[Peace will be here soon]

How long was he on the phone? Cell phone records could be used in court, along with the testimony of the person he was talking with.

If none of the witnesses say the man they saw was on a cellphone, and the timeline of the call runs into the timeline of the witnesses, then their testomony would be questionable.

Sounds like if he covers his tracks on where he was and when, he will be out of this in no time.

[HarryDunne]

I believe he was on the phone for quite a while before the men approached him.

That's a good idea about the phone records. I'll mention it to him. Thanks.

[Brainhose]

"According to the men who confronted Steve, there is supposedly a woman who claims she saw a man walking around with no pants on. No one knows who she is."

That is pretty damned flimsy evidence. But this guy is screwed either way. His reputation is going to be nothing but junk after this.
Hopefully he can avoid having to register as a sex offender. I hear that list is almost impossible to get off of.
I suggest that after this is resolved that he packs his bags and move back to Texas and get as far away from the "Land of fruit and nuts" as possible.
I'm guessing that one of these witnesses is pissed off at him for some other reason such as parking in a parking space that she views as hers.
It sounds like he has his own witness. Was his coworker with him the entire time?
The Cell Phone records idea is great. It could be argued though that he was on the phone when he did it so your buddy's lawyer is going to have to do some heavy grilling.
Good luck and God bless.