In Chapter 10, Freak announced that he had discovered the whereabouts of a "treasure [that] is hidden in a storm drain." They find that the treasure is an old purse, and the two boys decide to try and return it to the owner. The address leads them to the town's most decrepit projects, the New Tenements. The owner of the purse, Loretta Lee, recognizes Max (but can't place who he is) and forcibly invites the boys inside. Max realizes that her husband is Iggy Lee, leader of a biker gang known as The Panheads. After Iggy intimidates both the two boys and his wife, Loretta finally realizes that Max is the son of their old friend, Kenny "Killer" Kane. She also remembers Freak, that he is the son of "Gwen. Stuck-up Gwen." Loretta and Iggy "flash" back to when
"... these two were born. And then... a couple years later, Kenny does his thing and he's in the yard, right? Doing time." (Chapter 11)
Loretta decides that Max is "some kinda retard" and wants to "have some fun" with the two boys, but Iggy throws them out of the apartment. Before they leave, Loretta rubs Freak's head since "It's good luck, rubbing a dwarf on the head." Loretta cruelly tells Freak that she also knew his father, which peaks Freak's interest.
"Your old man was a magician... He must be a magician, because as soon as he heard the magic words 'birth defect,' he disappeared." (Chapter 11)
Under what condition is max father being paroled