TRUE CRIME NEWSCarrot Top Paid Alleged Assault Victim $250,000 Before He Reported Incident to Cops, Report Says — Inside the Secret Settlement
Carrot Top reportedly reached a confidential settlement with a man who accused him of sexual misconduct.
Oct. 22 2026, Published 10:22 a.m. ET
Carrot Top reportedly agreed to a $250,000 settlement with a man who accused him of sexual misconduct more than a year before the allegations were reported to police.
The comedian, whose real name is Scott Thompson, reached a confidential agreement with Zachary DeFazio on August 28, 2025, following allegations of sexual exploitation, emotional distress and providing alcohol to someone under 21, according to documents obtained by Radar.
The agreement explicitly denied wrongdoing and did not constitute an admission of liability.
Carrot Top Agreed to a $250,000 Settlement
The comedian entered the agreement in August 2025 following a legal demand submitted the previous month.
According to the agreement, DeFazio submitted a legal demand on July 7, 2025, before both parties participated in confidential mediation the following month.
The settlement called for Thompson to pay DeFazio $250,000 in exchange for releasing the comedian and several associated parties from civil claims related to the allegations.
The money was supposed to be transferred to NeJame Law's trust account within 10 business days of signing.
However, the documents did not independently confirm whether the payment was completed.
Thompson and the other parties denied liability, characterizing the agreement as a compromise intended to resolve disputed claims.
Secret Agreement Included Strict Confidentiality Rules
The settlement contained confidentiality provisions.
The settlement also contained extensive provisions restricting what either party could publicly disclose.
Both sides agreed to keep the payment amount, underlying allegations and negotiations confidential, with limited exceptions for certain legal proceedings.
DeFazio also agreed to release several entities from claims connected to the dispute, including Carrot Top Inc. and MGM/Luxor/Rampart entities.
The agreement was designed to resolve the civil dispute without further litigation.
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Settlement Attempted to Restrict Future Complaints
Carrot Top and the other released parties expressly denied liability in the settlement agreement.
One provision went beyond confidentiality by addressing whether DeFazio could pursue additional legal action.
According to paragraph six, DeFazio agreed not to file future claims or complaints against the released parties with state, federal or local agencies or courts.
However, a private civil settlement does not automatically prevent someone from reporting alleged criminal activity to law enforcement.
The provision has drawn attention because DeFazio subsequently contacted police regarding the alleged incident.
Carrot Top's Accuser Reported Allegations to Police in October 2026
Zachary DeFazio reported his allegations to Florida police in October 2026, more than a year after the confidential agreement.
On October 18, 2026, DeFazio submitted a three-page statement to the Winter Park Police Department in Florida.
He alleged that Thompson engaged in sexual activity with him during encounters in March, April and October 2021, when he claimed he was too intoxicated to consent.
DeFazio also alleged the entertainer supplied him with alcohol and described seeking therapy years later while processing the alleged experiences.
A representative for Thompson declined to comment on the allegations.
The allegations have not been proven, and the settlement expressly states that Thompson denied liability.
The documents reviewed did not establish whether any criminal charges had been filed.
