The Great Necklace Caper - S3.E28

Binghamton panics, when he learns that Naval Intelligence is on it's way to investigate the disappearance of a $1000 jade necklace, which he bought with funds 'borrowed' from the Officer's Club. Then, after the necklace turns up, Binghamton tries to frame McHale and his men with the crime, in order to cover his tracks.