The future hiring manager does not know what really happened, and any details is effectively hearsay to them.

The person becomes a very risky hire personally to the new boss then, because if the police were called once, they might be called again, even if you did nothing wrong. And your career and future income might be ruined. It's much safer to just hire the other person with no history of police involvement.

The general principle can be applied to other crimes too.