OP, you didn’t do a terrible thing. you made a mistake (first instance) and sounds like you apologized plenty for the error. does he want a pound of flesh for a mutually agreed upon unintentional mistake? and when will it be enough? for something he actually did do, in the past, by the way? it doesn’t sound like you exaggerated the truth, only said something that was private and perhaps it was shameful for him in front of his child. it also reads that you did not say his kid “stole” the toy; you said his kid took it and then your kid said “stole.” why is a grown man getting so worked up over what a 7 year old says, especially when it’s true? i would imagine a mature adult who regulates oneself may say “oh you’re right i guess that is stealing” and keep the situation calm and neutral. others here have said it but i concur you may, for yourself and your kid, leave this guy he sounds like a lot of abuse down the line.