Paterno's son, Scott Paterno, said in an interview that his father never spoke to Sandusky about the allegation and after referring the report of the incident to authorities did not discuss it again, according to The New York Times.
In one previous incidence, janitors witnessed Sandusky having sexual contact with a boy in the shower, but failed to report it for fear of losing their job. Another time, the university police were notified by a mother whose son told her about sexual contact with Sandusky on campus grounds. The university police and county district attorney did not press charges and the case was closed.
When questioned at his home by ABC News about the scandal, Sandusky said he was not at liberty to speak about the allegations.
"The situation is in the courts and I'm not to make any comments," he told ABC News. "Unfortunately, unfortunately I'm not in the position to make any statements."
His attorney says Sandusky has maintained his innocence.
"He's very distraught about the charges, the allegations and the knowledge that regardless of whether he eventually proves his guilt or innocence people are going to think that he did this," attorney Joe Amendola said.
Curly and Shultz announced they were both stepping down from their positions after an executive session of Penn State's Board of Trustees on Sunday.
Spanier made a statement late Sunday that Curley had requested he be placed on administrative leave so he can deal with the allegations, while Schultz will be going back into retirement, The Associated Press reported.
Spanier said Curley and Schultz have his "unconditional support," but state prosecutors say the university failed to follow up on the allegations or to notify police.
Sandusky, once known for grooming star players for the Penn State Nittany Lions, was considered both a possible successor to legendary head coach Joe Paterno and a pillar of the community. He is now free on $100,000 bail and is scheduled to attend a preliminary hearing on Nov. 9, but has been banned from the university campus. He faces life behind bars if convicted.