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Fair enough - Paterno may not have witnessed anything, but people involved in this did. That's not a suspicion, that's direct knowledge. In that case, yes, I think the law should punish people for failing to report something of this nature. On a suspicion? No. But if you witness something. Sure, yes, it should be your moral AND legal responsibility to report that.
I suppose we'll have to agree to disagree there. Just bear in mind, everyone reading this thread, that I can pretty well assume that you all have direct knowledge of at least one felony that's been committed that you did not report. Does that make you a bad person? I don't know, I figure that it depends largely on the crime in question. But it should never make you a criminal, and, thankfully, the law as written generally supports that.