SANTA MARIA, Cal. – Macaulay Culkin says it ain’t so, but a former Neverland ranch worker swore yesterday he saw Michael Jackson with his hand inside the child star’s shorts while the boy was entranced by a video game.

Reaching back about 13 years in time, Phillip Lemarque, 70, testified he saw the singer cupping the “Home Alone” star’s crotch, his “left hand down into the pants” when Lemarque made a 3:30 a.m. run to deliver sizzling french fries to the pair in the ranch’s game arcade.

“I was shocked. I almost dropped the French fries,” said Lemarque, who was a food service manager at Neverland for 10 months in 1991-92 and said the staff called Jackson by the code name “Silver Fox.”

“The kid was small – he couldn’t reach the controls,” Lemarque said in a heavy French accent. “His [Jackson’s] right hand was mid-waist and he had his left hand down into the kid’s pants,” said Lemarque.

Lemarque said he never called the cops on Jackson because “I thought nobody would ever believe it because Michael was on top of everything at that time.”

Jackson’s defense was barred by the judge from telling the jury of Lemarque’s less-than-savory past. From 1997 to 2004, Lemarque ran a hard-core porn Web site called “Virtual Sin,” offering every manner of triple-X-rated sex material imaginable.

The jury also was not allowed to hear that Paul Barresi, a gay porn actor pal of Lemarque’s, had said in a 1993 “Frontline” documentary that his friend’s original story was that Jackson’s hand was outside Culkin’s pants.

Barresi said Lemarque changed his story to make more money from the tabloids, The Smoking Gun Web site reported.

On cross-examination by defense lawyer Tom Mesereau, Lemarque testified Barresi, a friend of his wife, Stella Marcroft, secretly taped a conversation between them and lawyer Arnold Kessler.

Using the tape, Barresi sold their story for his own profit, without their consent, Lemarque testified.

Mesereau also suggested Barresi and Lemarque conspired and came up with the idea “that the story would be worth more if the hand was inside the pants” to raise the tabloid bidding price from $100,000 to $500,000.

Lemarque denied it.

Mesereau strongly hinted Culkin will deny the allegation in court. “You’ve never talked to Macaulay Culkin about it. You’ve never heard his side. Are you aware he denies this ever ….”

Prosecutors instantly objected and cut him off. Culkin and his dad, Kit, have repeatedly denied Jackson ever molested him.

In other testimony, a former Jackson maid, Adrian McManus, told the jury that the singer never slept with his former wife, Lisa Marie Presley – or any woman for that matter. Even Brooke Shields, when she visited, stayed in a guest house at the ranch, she said.

Just last week, Presley told Oprah Winfrey that she did have sex with the King of Pop.

“It was a consummated marriage,” she said. “Yeah, that’s all I have to say on it.”