Vern received a letter with a photo containing his two sons, even though his son Andrew was dead. He threw it away.
[Episode 25: "A Cock and Balls Story"]

Father Mukada informed Vern that his son Hank was there to see him. Vern's visit with his youngest son made him very happy.
[Episode 26: "Obituaries"]

An inmate told Vern that Tobias Beecher, his archenemy, had paid to have Hank visit him. Vern believed that Beecher was trying to mess with him, so he paid Hank a thousand dollars to kidnap Beecher's two kids.
[Episode 27: "The Bill of Wrongs"]

Vern held his story true that he didn't know anything about a kidnapping. He had Hank "send the package", which was Beecher's son's hand in the mail. He seemed to take it hard when Shirley Billinger was executed.
[Episode 28: "Works of Mercy"]

Vern had Hank deposit Beecher's son's body. He then paid an inmate named Eli Zabitz to lie to Beecher, saying that Chris Keller had kidnapped his kids. Mukada called Vern to his office, where he believed that Schillinger had been the father of the late Shirley's baby. Vern denied it. Mukada also explained that Beecher had had Hank found to make up for what had happened to Andrew. Mukada pleaded with Vern to do the right thing. Vern called Hank and told him to let Beecher's daughter go.
[Episode 29: "Gray Matter"]

Vern was interviewed by the FBI who informed him that Hank had been arrested while delivering Beecher's daughter. Vern had no idea whether or not Hank would turn him in.
[Episode 30: "A Word to the Wise"]

Zabitz demanded protection from the Aryans, claiming that Keller wants him dead for lying. Vern promised to protect him, but instead sent Jim Robson to kill him. Robson returned with news that Zabitz had died of a heart attack. Vern soon learned that Hank had been released due to a technicality. He came to visit his father, and asked for more money to go to Miami until the heat from the kidnapping dies down. Vern gave him the money. Upon realizing that Emerald City had "become a ghetto", he suggested to Unit B's unit manager that Unit B become an all-white unit. McManus did not take the suggestion very well.
[Episode 31: "A Town Without Pity"]

Vern received a visit from a young woman named Carrie, who claimed to be Hank's wife. She was worried because Hank had disappeared. Vern assured her that Hank was in Miami, and Carrie told him that they need to find him, because she is pregnant.
[Episode 32: "You Bet Your Life"]

Vern was interviewed by reporters about his past with Tobias Beecher and Chris Keller, which reminded him that he had a dead son, a missing son, and a grandchild on the way.
[Episode 33: "Medium Rare"]

He was approached by Reverend Jeremiah Cloutier, who helped him realize that he is unhappy. He began to seek retribution
[Episode 34: "Conversions"]

Schillinger continued to comfort Carrie as her pregnancy progressed and he continued to search for Hank. Cloutier made some calls that gave Carrie someone to talk to on the outside.
[Episode 35: "Revenge Is Sweet"]

Finally, Vern was informed that Hank's body was found in Massachussettes. Immediately suspecting Beecher, he had Robson stab Beecher's brother while he was visiting. He decided to have Beecher's entire family killed, but then Keller confessed to the murder and was transferred out of Oz.
[Episode 36: "Cuts Like A Knife"]

When he told Carrie that Hank was dead, she freaked out and went into labor. She gave birth to a baby girl and named her Jewel.
[Episode 37: "Blizzard of '01"]

The little girl made Schillinger very happy, until a pimp told Schillinger that Hank had forced Carrie to work the streets, and Schillinger realized that Jewel may not be his granddaughter.
[Episode 38: "Orpheus Descending"]

Vern confronted Carrie about it, and she admitted that there was a one in three chance that Hank was the father.
[Episode 39: "Even the Score"]

Schillinger had a blood test to find out the truth, and it was revealed that Hank truly was the father. Jim Robson informed Schillinger that Beecher was up for parole, and Schillinger wanted to ruin Beecher's parole like Beecher ruined his back in 1998. However, Schillinger did nothing and Beecher's parole was denied. Schillinger and Robson went to Beecher to gloat, and suddenly both were stabbed by Kareem Said and sent to the hospital.
[Episode 40: "...Famous Last Words"]