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Rhonda appears at the Muppet Theatre as the show's guest star and proceeds to read the fortunes of the various Muppets and then taking all of their money. After she tells Miss Piggy that she is about to lose something "precious and green" (her money), she assumes the fortune means she will lose Kermit. When Miss Piggy sees Rhonda and Kermit holding hands (as he is having his palm read), she assumes Kermit is cheating on her, which causes her to beat up Rhonda (and Kermit) and find that her purse was stolen, revealing the truth about Madame Rhonda.
According to a newspaper article about her arrest, Madame Rhonda's other aliases include Tarot Gertie, Scorpio Lil, and Black Claw, Emperor of the Universe, and other entertainment troupes she bilked out of their money included Ted Ponk's Traveling Flea Circus, The Mercury All-Canine Theater Company, and Gladys Terrible's Donkey-Grooming Beauty Parlor.