Café owner Mike Clancy is told by his doctor that he needs to take a rest in the mountains due to his asthma. A crooked real estate agent sells Mike an old house that once belonged to the widow of a gangster. Mike and the Bowery Boys head out to the house, and eventually find a large pile of money hidden inside. Pretty soon, old friends of the deceased gangster who once owned the house catch wind of the Boys' discovery, and decide to rob the place. To add to this madness, the Bowery Boys find the house to be supposedly inhabited by ghosts.