Kendra Wilkinson and Hank Baskett are finally revealing exactly what happened between Baskett and a transgender model that nearly caused the demise of their marriage.

Reports circulated that Baskett cheated on Wilkinson with the model when the ex-girlfriend of Hugh Hefner was eight months pregnant with their daughter.

"I don't say the word 'cheat.' I can say he was not loyal to me,” Wilkinson told People magazine. “I don't care about the act. I care about how he reacted to it and how I was told by the media what happened. That scarred me."

The act Wilkinson was referring to was when Baskett claims he was fondled through his basketball shorts by the model. He explained that the incident occurred after he went to the model’s home to buy some marijuana and encountered her nude and kissing another transgender woman when he exited the restroom at the home.

"I saw something I thought I would never see in my life,” he told People. He said the model then fondled him.

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"I didn't engage in anything,” he insisted to the magazine. “It was like a bank robbery. You never know when you'll freeze. I don't know if it was a couple of seconds or 15 seconds, because all I was saying was get out, get out, get out."

Baskett said he was humiliated when news of the incident broke, and he was distraught that he could not protect his family.

Wilkinson said her husband was too naïve to properly handle the situation.

"Hank was very naïve and gullible," she said.

She cited his innocence when explaining a phone call that later leaked, in which Baskett was heard begging the model to accept money in exchange for her silence.

Wilkinson said she would have done the same thing in Baskett’s shoes.

"I wouldn't have pissed off that predator either," she told People. "I would have said, 'I'll give you the world, please don't ruin my life.' "

After news of Baskett’s actions broke, Wilkinson flushed her wedding ring down the toilet and the two endured a very public break -- but not a breakup. Now, they are going strong.

“I'm actually very happy Hank went through this now because he's able to teach his son and his daughter what it's like to make a mistake and what you do after making a mistake."

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