This man who was possibly the real Santa Claus appeared at the Mall during Christmas to help Raven.
Raven opened her Christmas present early and accidentally had it chopped in a lawnmower. Raven spent the next few days trying to get a replacement, causing her to miss all of the thing she usually did with her family.
Raven was caught by Mr. Petrachelli, but was surprised to see he knew that she was psychic. He revealed that he was actually someone else and gives her the "chance of changing the past". Suddenly we're back to the beginning of the episode and Raven decided not to open her present. This is an example of the Deus Ex Machina as used in some Disney television episodes such as "In Ren We Trust" of Even Stevens which resets the episode