This takes place during the episode, in between Riker showing Kazago the thought maker and Kazago telling Riker that Bok had been removed from command.
When Kazago had said that DaiMon Bok was in the laboratory, he hadn't been lying.
The laboratory just happened to also be where Bok used the thought maker that he'd been using to torture the Enterprise captain.
After Riker had shown Kazago the other end of the thought maker, confirming his suspicions, Kazago entered the lab.
"What is it?" Bok asked, clearly angry. "I thought I said you weren't allowed to come in here!"
Kazago paused before saying, "Haven't you tormented the hew-mon enough?"
"What?"
"Revenge isn't really a profitable enterprise, DaiMon."
Bok turned around to face his second-in-command. "Do you feel for the hew-mon, Kazago?" he asked, mockingly drawing out the word "feel." "I know you've looked in the computer banks. My son is dead because of the captain!"
"But if something happens to the Enterprise, we will lose any standing with the Federation!"
Bok snorted. "Ha, the Federation! We don't need them!"
Kazago shook his head sadly. "The price for revenge is too high, DaiMon. I'm revoking your command."
"You can't do this!" Bok screeched as Kazago called security to escort the DaiMon to the bridge.
Kazago had his regrets, but he stood tall. "Sorry, Bok," he said. "I just did."