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Sherlock Holmes and Dr. Watson are searching for the valuable, supposedly cursed necklace of Cleopatra, which disappeared shortly after it was discovered in Egypt by the archaeologist Professor Moriarty. They suspect that the brilliant but unscrupulous scientist is in possession of the piece of jewelry, but Inspector Cooper from Scotland Yard does not believe this assumption. The trail leads to Moriarty's expedition colleague Peter Blackburn, who stole the necklace during the excavation work. Moriarty has him killed and obtains the necklace, which he hides in a sarcophagus. Holmes tracks it down there and hands it over to Inspector Cooper. When the necklace is on its way to the auction house where it is to be auctioned, Moriarty has the police van attacked. Since Holmes has infiltrated the gangsters, he is able to get the necklace back so that it can still be auctioned; Moriarty, who believed he already had it, reluctantly has to confirm its authenticity.