Security at a shopping mall in the city of Danbury called police after the centre's St Nick said he'd been inappropriately touched by a 33-year-old woman.
"I don't know what the deal was — it was just bizarre," the man who played Santa said.
Sandrama Lamy has been charged with fourth-degree sexual assault and is due to appear in court on 3 January.
Lamy has denied the charge in an interview with local newspaper The New Times, adding that she "did nothing wrong".
"I did not sit on his lap," Lamy said.
"A woman there said 'be careful, that's my husband'.
"I said, 'What does that have to do with the picture?'
"That's all I said, and I left."
While adults wanting to sit on Santa's lap is not uncommon, the big man is rarely groped by adoring female fans, according to RealSantas.com president Tim Connaghan.
"Once in a while they'll [ladies sitting on Santa's lap] say 'I hope Mrs. Claus isn't going to be upset'," Mr Connaghan told Associated Press "You have to be discreet and kind and say 'Oh no, she'll be ok … you can sit here, but only for one photo'."
