No, he was caught jerking off in a porn theater and charged with public indecency. In my opinion the whole thing was blown out of proportion and a stain on his legacy that doesn't deserve to be there. People just hear "sex crimes" and "children's performer" and come to that assumption. (No shade to you, its a fair assumption. I more have a problem with how the media handled it at the time)
IIRC he never claimed to not own CP; He was charged and there was legitimate evidence of dozens of CP materials. His legal defense was that he buys bulk lots of kisch art and wasn't aware the offending material was in there.
He would later in 2004 (after charges were dropped in exchange for a obscenity charge) claim that he was aware of the CP; but he only owned it for as he also collected vintage Erotica; and he further claimed the CP was "innocent nudes" and in no way pornographic in nature.
Not being charged doesn't mean he didn't actually own the offending materials.
It was the 90's, before the internet and he had a thing for pornography. The pussycat theatre was specifically an adult theatre that showed pornography, three other men were arrested with him, presumably because that what people went to the theatre for.