Red was a drug dealer looking to operate in Twin Peaks.
Red met with Richard Horne and discussed drug trafficking with him. He asked Richard if he had ever studied his hand and stated that he had a liver problem that made him stamp his foot. Red then asked about The King and I and threatened Horne to not double-cross him. Red then performed a "magic" trick with a coin that hung in the air then appeared in Richard's mouth before returning to Red.