Paterno knew full well what was going on and did nothing or even worse was a participant as well. My understanding of these 'types' is they tend to associate and work together (i.e. hunt in packs).
You are suggesting that Paterno molested these children as well?
Considering that none of the victims that accused Sandusky accused Paterno, I would say you are stepping out n a very thin limb.
The stories that have come out suggest that Paterno knew about the molestations (one was reported directly to Paterno in a phone conversation as a rape) as early as the 1970s. When they finally dismissed Sandusky from the team they gave him an office somewhere in the athletic facilities, and they gave him full access to the PSU football and athletic facilities.
Paterno's claim that he "reported it to his superiors" so he had basically done his job, doesn't explain why he supported the idea of keeping Sandusky around where he (Paterno) knew that Sandusky brought little boys from that charity (and continued to bring them after several allegations had been brought forward). It seems to have been common enough knowledge around Penn State to the point where players would talk about someone getting "Sandusky-ed".
Okay, so add up all that we do know....
Paterno has an accused sexual predator on his coaching staff from the 1970s
Paterno keeps and promotes said accused sexual predator
When allegations force said predator from the team Paterno allows the guy full access to the Athletic facilities.
So, I won't go so far as to accuse Paterno of sexually abusing children, but it does beg some pretty big questions and I'm not sure how thin that limb really is.