I think the endless discussion is missing one real possibility: that Craig may be telling the truth.
It's hardly unknown for police to entrap someone, especially when they're trolling for perverts. We don't have any point at which Craig offered sex, discussed sex, even hinted at sex --- just a my-word-against-yours from a policeman who just "knew" that brushing his hand in a physically-impossible fashion under the edge of the stall was a proposition. And now we've got a policeman calling him a liar, threatening to arrest him for something rather more than "disorderly conduct" --- and Craig knowing that if someone has to bail him out it will be pretty awful --- and then the officer offers to let him off with disorderly, and no one will ever have to know.
I don't find it all that difficult to imagine him, in a moment of weakness or cowardice, deciding the "smart" thing to do is get it over with. Who knows if Mike Nifong is the prosecutor?
So let's be straight about this (heh): it is less than clear that Craig committed any crime. But, given what we're seeing now, would have have been wrong to think that the accusation would have destroyed his life? Was he in any position to fight?
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