Deacon first came to town when he was discovered to be the father of “Little Eric,” Becky Moore’s (Marissa Tait) son who was currently in the custody of Amber Moore (Adrienne Frantz) and Rick Forrester (then Justin Torkildsen). Once Deacon had custody of the child, he took bids from both the Forrester family and the Spectra family for Eric before deciding which family should be allowed to raise the child. After he sorted out Eric’s custody, Deacon fell in love with Brooke Logan (Katherine Kelly Lang) and they carried on an affair while he was married to her daughter, Bridget Forrester (Jennifer Finnegan). When Deacon fell on some hard times, he extorted Brooke with the truth of their affair so that she would lend him money.
Deacon was shot by Eric Forrester (John McCook) when he wanted to reunite with Eric’s daughter Bridget, but instead of pressing charges, Deacon blackmailed Eric into letting Deacon’s fashion house into the Forrester business. His blackmail didn’t stop there; when Bill Spencer (Don Diamont) broke Deacon out of jail to interrupt Hope Logan’s (then-Kimberly Matula) wedding to Liam Spencer (Scott Clifton), Deacon went along with it, but eventually used Bill’s actions to coerce him into giving him a job.