Police say Jesse Paul Carr was an overnight guest at a home in the 100-block of North Glencoe in Sept. 2010.
They say the homeowner woke up and heard her three-year-old daughter say, "Stop that! You're scaring me."
The woman told police that Carr was touching himself near the toddler and the young girl was no longer wearing her underwear or pajama pants.
Carr told police he didn't know the child was in the room at the time.
He's charged with indecency with a child.