Rumor is a Green belt at the Cobra Kai named James Williams was gonna turn states evidence on Miyagi and his Yakuza ties. While waiting for the Federal Grand Jury, Williams was placed into Witness Protection under the name "Jimmy Willis" in Beechum County, Alabama. While working at the Sac-O-Suds, Williams was executed by two "youts". Daniel is suspected to have been involved in the homicide but due to his Mob Lawyer from the Gambino family he beat the charges.
Without Williams testimony, the federal grand jury indictment was unsucessful. Authorities believe that Miyagi and Daniel provide the connection of the Gambino Crime Family and the Japaneses Crime syndicate known as the Yakuza.