for sandusky s child victims. reporter: the athletic director and the legendary coach all knew in 1998 that sandusky was under investigation for sexual mississippi conduct misconduct but never did anything to stop him. former coach mike mcqueary reported witnessing sandusky abuse a boy in the shower. reporter: they allowed sandusky to retire in 1999 as a valued member of penn state, allowing him to lure more victims. reporter: the former coach said he should have done more but insists he never would have taken part in a cover-up. reporter: the idea that a sane responsible adult would knowingly cover up for this is appalling. reporter: some alumni believe the board should not be held accountable. i m outraged and embarrassed by the leadership of my university. reporter: lawyers say freeh s report will strengthen any litigation for the university or paterno s estate. all the former penn state officials named in today s report, deny any wrongdoing. but two of t