Daniel Scott came to Salem in 1994. Laura Horton spotted Peter talking with a man on the docks and Peter feared that Laura would eventually learn that the man was a drug dealer. Peter enlisted the aid of Daniel Scott to gaslight Laura. Daniel dated Laura and even had her office repainted. However, the paint was toxic and it caused Laura to become drowsy. Using a speaker built into a souvenir bust in Laura's room, Peter made Laura believe that he was planning on killing Jennifer. Laura looked like she was going insane and was going to be re-committed to an asylum. Afraid, Laura ran away and hid out with Vivian's help Peter's plan failed when Jen fell asleep in her mom's office overnight and became convinced that foriegn troops were invading America (or some whacked out story). Jen had actually heard a story on the radio and became confused. Laura returned to the hospital after Jen was admitted. When she was spotted, Laura fled and ended up trapped on a faulty fire escape. Jen came after her mother and ended up trapped as well. Peter eventually rescued the two and came off looking like a hero. Mike had Laura's office analyzed and they blamed Laura and Jen's hallucinations on the paint. Daniel Scott left town and Peter decided that Laura was no longer a threat.
Jack learned that Daniel Scott was in Paris and lured him into a high-priced poker game. When Daniel couldn't pay his debt, Jack pays it for him in order for the goods on Peter. Daniel confessed everything and Jack told Jen the truth about Peter. Jen didn't believe Jack, but Laura came forward with what she knew about Peter as well. Peter brought Daniel Scott to Salem and had him tell Jennifer that Jack made up all the lies about Peter and he was forced to go along with Jack because he needed the money. Later, Jen sees Peter talking with Daniel in Salem Place. Jen attempts to get the truth out of Daniel, but he won't talk. Jen tells Daniel that she already knows everything and was just testing him. Daniel believes Jen and tells her everything, including how they gaslighted Laura.
Daniel Scott showed up at the Blake house later to find Peter and extort more money out of him. Unfortunately, Daniel ran into Stefano. The two argued and Daniel backed into a large window and fell to his death from the 2nd story.