JACKSONVILLE, Fla. – A man who is serving time for embezzling millions of dollars from VyStar Credit Union is now accused of dozens of sex crimes involving children.
Allegations of sexual abuse came to light in the investigation into Duane Sikes’ financial crimes and the Jacksonville Sheriff’s Office said investigators uncovered evidence that Sikes used the stolen money to pay young boys to perform sex acts.
In 2019, Sikes was sentenced to 10 years in federal prison, but now he’s back in jail in Jacksonville after he was charged earlier this year with three counts of child sex trafficking.
According to an arrest report, Sikes was involved in sex trafficking three teen boys from 2016 to 2019 and paid them for nude photos or to perform sex acts he would record.
Court records suggest there could be more victims.
The arrest report said Sikes would gain the boys’ trust by letting them use his pool and giving them money.
JSO said he would bring boys to his Lakeshore Home on Shirley Avenue.
In 2019, a federal prosecutor told the court they had evidence, corroborated by bank records, that Sikes paid “dozens and dozens” of teenage boys to swim naked in his pool while he filmed them and perform sex acts on each other while he filmed them.
They said he paid them quid pro quo in cash and expensive gifts including car sound systems, an expensive guitar, a new Ford Mustang, and many, many instances of eating out at high-end places such as Timuquana Yacht Club and The Brick restaurant.
MORE: VyStar embezzler accused of molesting boys was on JSO’s radar for years
News4JAX Crime and Safety Analyst Tom Hackney, who spent nearly 3 decades on the force at JSO, said gifts can be a red flag for grooming.
“Expensive gifts, in some cases, where did you get that from? Oh, so and so gave me that, you really want to take a take a close look at that,” Hackney said.
In fact, it was gifts that tipped off investigators when they analyzed his bank records as part of a federal embezzlement case and found cash withdrawals every day of $400 and $500.
Sikes worked in the mail department at VyStar for years and was accused of spending more than $5 million of checks meant to buy postage for the credit union to buy stamps he would then re-sell. He then pocketed more than $3 million for himself. He pleaded guilty in 2019.
Kevin Owens, Vice President of Corporate Security and Safety at VyStar Credit Union who investigated the case, testified the total amount stolen by Sikes was actually $6.8 million, which was taken over a 13-year period. None of the funds were recovered.
Owens said the scam was discovered after Sikes was fired for time card fraud when he had another employee clock in and out for his job that paid him $32,000 a year.
“When he got caught, his house of cards fell,” Owens said.
Ownes said the crime tarnished the reputation of VyStar and its employees.
At his sentencing, multiple people testified Sikes had abused them as teens.
The prosecutor in that case described a child sex ring in which children would recruit other kids to come to Sikes’ home to hang out or make some money which would eventually devolve into abuse. They describe different “generations” of boys who would hang around Sikes.
It wasn’t until three years later that Sikes was charged with child sex crimes, including 50 counts of producing child sexual abuse material.
In 2019, the federal prosecutor said she talked to a victim who “stated that the damage Mr. Sikes caused in his life and the other boys’ lives is irreversible. He believes that Mr. Sikes victimized at least 40 boys.”
Sikes, through his lawyer, denied the accusations in federal court in 2019 and pointed out that Sikes previously had never been convicted of a crime. But records show that JSO was contacted about Sikes and his relationships with young boys at least six times.
“I believe these boys,” Judge Brian Davis said in the Federal Courthouse in Jacksonville in 2019. “Despite the goodwill towards friends and family, there is also evidence he enticed children and sustained them, so he could have his way with them.”
Sikes’ defense attorney Bill Kent questioned the credibility of the accusers during their testimony and wondered why they didn’t come forward sooner to report Sikes’ behavior. All who testified said they were too scared and embarrassed at the time.
MORE | DoJ: Credit union employee who stole millions paid off teens for favors
Sikes was transferred from federal prison to the Duval County jail to be served with the warrant related to the child sexual abuse material. Then, in January he was hit with a new warrant for sex trafficking.
He has a hearing on both cases next month.