I honestly can't believe this wasn't anywhere here.
The movie opens with a drug deal gone bad. (Have you ever heard of a drug deal gone good?) An entire criminal gang is wiped out by a mysterious figure the last victim addresses as Keyser. After this victim, Keaton, is shot, "Keyser" sets fire to the ship they're on and leaves.
Shortly afterward, the police catch the only surviving member of the gang, a CP-afflicted man named Verbal Kint. A Detective Kujan interrogates Kint who details how the gang got together after a police lineup and a series of crimes they committed. Meanwhile, another detective visits another victim of the massacre in the hospital and the name Keyser Soze comes up. The victim claims he can identify Keyser Soze and starts working with a sketch artist.
When Kint is asked about Keyser Soze, he starts to tense up. He goes on to describe how the crew came about working for a man known by that name and how they ended up on the ship. He details how Soze blackmailed the gang into raiding the ship for drugs (which later turned out to be not there) and how one member left the gang rather than be bossed around by Soze. The gang member later turned up dead. He then details how he was told to stay behind and watched helplessly as the mysterious Keyser Soze eliminated the rest of the gang and all other survivors (except for the man in the hospital).
Kujan then browbeats Kint into realizing that Keaton was actually Keyser Soze and that he faked his own death. He offers Kint protection, but Kint refuses and hobbles out of the police station. With nothing to do about him, Kujan just sits back in his office and drinks his coffee. Then, he looks at his bulletin board and the rug gets pulled out from under him. He notices that several bits of Kint's testimony were fabricated from things on the bulletin board. He runs out after him just as the sketch of Keyser Soze is faxxed from the hospital. It looks just like Kint. Outside, Kint's CP suddenly disappears and he gets into a car with a man he earlier identified as Kobayashi. Kujan makes it outside just as they drive off, gone in a flash.

Kujan wears clothes that appear more expensive than a U.S. Customs agent could afford. Plus, Chazz Palmenteri as Kujan looks like he's wearing one of William Shatner's toupees.