Grand Rapids, MI – Charges have been dropped against a Michigan man accused of urinating on a 5-year-old girl and calling her a racial slur.

Investigators were able to determine that the alleged victim and her friends fabricated the story to avoid getting themselves into trouble.

Convicted sex offender David Allen Dean, 60, was arrested on Wednesday, after Katrena Rapier called police to report that her children’s 5-year-old friend came home “soaking wet,” and reeking of urine, KTLA reported.

The girl said she was playing hide-and-go-seek with Rapier’s children, ages 5, 7 and 7, when an older man urinated on her as she was hiding behind a bush.

"She came in the house and she was wet, like soaking wet, and I'm asking her what happened but she was afraid to tell me because she thought she was going to get in trouble," Rapier told KUTV. "And then I called my boys because I knew they'd tell me and then they said the guy said 'stupid N-word' and started peeing on her."

All four of the children provided a description that matched that of Dean, who was subsequently arrested for felony sex offense excluding assault and commercializing.

Rapier said she didn’t understand why Dean, who lives in the same neighborhood, would do such a thing.

"We see him every day,” she said. "I never knew that he was capable of doing all that to a 5-year-old child. She's basically a baby she didn't want to come out of the house after that. She was just afraid."

Dean’s criminal history included a 1997 conviction for criminal sexual assault against a child under the age of 13, KUTV reported.

He was also convicted of attempted criminal sexual assault in 1981, and two counts of indecent exposure in 1994.

According to KUTV, Dean was listed as a “non-compliant” sex offender on the Michigan State Police’s registry.

After the Children’s Advocacy Center conducted a series of interviews with the children, police and prosecutors learned that they had fabricated the story in an attempt to cover up the fact that one of the other children had urinated on the little girl, FOX News reported.

Dean also had a “verifiable alibi,” supported by other individuals who vouched for his whereabouts at the time of the alleged incident, MLive reported.

"The community and members of the media were understandably interested and concerned about the allegations,” Kent County Prosecutor Chris Becker told the news outlet. "But this is a prime example of why it's so important to wait until all the evidence has been gathered and the criminal investigation has been completed before jumping to any conclusions.”

The charges against Dean were dropped on Friday.