Two Penn State officials head to court over child-sex abuse scandal involving ex-coach Jerry Sandusky

A Dec. 28, 1999 file photo of Penn State defensive coordinator Jerry Sandusky after the Alamo Bowl in San Antonio.
AP Photo/Eric Gay
Insets: Gary Schultz. Penn State's vice president for finance and business (top), and athletic director Tim Curley. Penn State defensive coordinator Gerald "Jerry" Sandusky, pictured being escorted by Pennsylvania State Police.
AP Photo/Andy Colwell, Patriot-News; Pa. Office of Attorney General; Gene J. Puskar

(CBS/AP) STATE COLLEGE, Pa. - Penn State athletic director Tim Curley and school administrator Gary Schultz have stepped down amid allegations of an explosive child-sex abuse scandal and cover-up in Happy Valley.

Pictures: Child-sex scandal rocks Penn State

The two high-ranking Penn State administrators face arraignment Monday on charges they lied to a grand jury investigating former defense coordinator Jerry Sandusky and failed to properly report suspected child abuse.

They deny the allegations.

In a brief statement released after an executive session of Penn State's Board of Trustees, University President Graham Spanier said late Sunday that he had received a request from Curley to be placed on administrative leave so he could devote the time needed to defend himself perjury and other charges.

Schultz is stepping down and going back into retirement. He was named senior vice president and treasurer from 1993 to 2009 and returned this year until a new person could be found.

Sandusky was arrested Saturday on charges that he preyed on boys he met through The Second Mile, a charity he founded for at-risk youths. The charity said in a statement Sunday that Sandusky has had no involvement with The Second Mile programs involving children since 2008. That is the time when Sandusky told the foundation that he was being investigated on child-sex allegations.

The case has rocked State College, a campus town routinely ranked among America's best places to live and nicknamed Happy Valley. Under head football coach Joe Paterno - who testified before the grand jury and isn't considered a suspect - the teams were revered both for winning games, including two national championships, and largely steering clear of trouble.