Sandusky Scandal: Penn State Vice President Faces Charges

Gary Schultz, Penn State's vice president for finance and business, and athletic director Tim Curley are to be charged of perjury and failure to report under Pennsylvania's child protective services law in the investigation of sexual abuse charges against former Penn State defensive coordinator Gerald "Jerry" Sandusky, reports CBS News correspondent Michelle Miller.

As officials try to deal with allegations against a trusted coach, the university's board announced their resignations overnight. Trying to temper the scandal that could damage Happy Valley's storied reputation.

But in a 40-count indictment, Sandusky, who had built a great reputation as defensive coordinator for Penn State football, is accused of targeting eight boys over a period of 15 years – both before and after his retirement in 1999.

Sandusky is said to be "distraught" over sex allegations. "Jerry's very, very depressed. He's very upset. He's very distraught about the charges, the allegations," said Joe Amendola, Sandusky's attorney.

According to the indictment, in the spring of 2002, a graduate assistant reported he witnessed Sandusky sodomizing a young boy in the shower.

Prosecutors say head coach Joe Paterno alerted athletic director Tim Curley, after the student told him the day after the incident. Curley then called in Gary Schultz. A week and a half later, both met with the graduate assistant, but never contacted police. Late Sunday, Curley and Schultz resigned. But both men have maintained they are innocent of any wrongdoing.

Joe Paterno issued a statement clarifying his grand jury testimony, saying:

"It was obvious that the witness was distraught over what he saw, but he at no time related to me the very specific actions."

Paterno is a witness and not under investigation, prosecutors say. Nils Frederiksen, a spokesman for the state attorney general's office, told The Associated Press that whether Paterno might testify was premature and nothing more than rampant speculation.

The university has banned Sandusky from the campus. He is out on $100,000 bail, but faces charges that could put him in prison for life.

The Second Mile charity that Sandusky started back in 1977 to help troubled children said in a statement Sunday that Sandusky has had no involvement with The Second Mile programs involving children since 2008, when Sandusky told the foundation that he was being investigated on child-sex allegations, writes Miller.

However, authorities are condemning Penn State University for what they called a widespread culture of failing to report the abuse by Sandusky, writes Colleen Curry, Kevin Dolak, TJ Winick and Alyssa Newcomb at ABC news.

"This is not a case about football. This is not a case about universities. This is a case about children that have had their innocence stolen and a culture that did nothing to stop it or prevent it from happening to others," said State Police Commissioner Frank Noonan.

It is said that the authorities are still trying to determine the identity of the boy from the 2002 incident.

"There aren't many heroes involved" in the case, Noonan said.

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