John Peters, who is also known as "Santa John," had his bond lowered from $600,000 to $100,000.
If Peters gets out of jail, he will be put under house arrest with no access to computers and only supervised visits with his grandchildren.
Peters is accused of chatting with an Apex teenager online, asking her to pose for nude photos and sending her nude photos. Apex police said he was driving a red sports car with the personalized plate "SANTACAR" when he showed up for what he thought was a meeting with the girl in January. However, he was greeted by undercover officers who arrested him.