When Michael Jackson detractors claim that the description of Jordan Chandler matched the photos made of Jackson’s genitalia during a strip search in December 1993 (not true, details here), they realize that it is a big problem for them that Jackson was not arrested after that strip search, which strongly indicates that it was not a match.
So they came up with this explanation:
This makes little sense. Fact is that the prosecution already had interviewed Jordan Chandler by that time, they had his testimony, including his description of Jackson’s genitalia. That’s all they needed to arrest Jackson if it was indeed a match.
The strip search was a part of the criminal investigation and the civil settlement talks had no bearing on it. At the time, district attorneys, Thomas Sneddon (Santa Barbara) and Gil Garcetti (Los Angeles) even declared in a court motion (not related to the strip search) that the civil and the criminal proceedings have nothing to do with each other .
More importantly, at the time there was no indication by the Chandlers towards the prosecution that they do not intend to cooperate with the criminal proceedings if they settle the civil case. In actuality, even in late January 1994, after the settlement and more than a month after the strip search, the Chandlers still told prosecutors that they would fully cooperate with the criminal investigation. Los Angeles district attorney, Gil Garcetti said right after the Chandler settlement in January 1994:
“The criminal investigation of singer Michael Jackson is ongoing and will not be affected by the announcement of the civil case settlement,” Garcetti said. “The district attorney’s office is taking Mr. [Larry] Feldman [the Chandlers’ attorney] at his word that the alleged victim will be allowed to testify and that there has been no agreement in the civil matter that will affect cooperation in the criminal investigation.” 
 Geraldine Hughes – Redemption: The Truth Behind the Michael Jackson Child Molestation Allegations, page 137 (Hughes Publishing, January 2004)
 Jackson Settles Abuse Suit but Insists He Is Innocent : Courts: Singer will reportedly pay $15 million to $24 million to teen-ager. Criminal investigation will proceed. (Los Angeles Times, January 26, 1994)