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What Should MLB Do in a Penn State Situation?

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OK, now here is a discomforting discussion question for you.

Let's say a scandal cropped up with your favorite major league baseball team. Let's say that it was discovered that the pitching coach for your major league team was caught raping bat boys in the showers, and that the manager and general manager found out about it, and that they made him "retire," but that he continued to run his own pitching camp every spring for high school students, and that he was raping those kids too, and nobody stopped him.

And let's say that this went on for years and years, and that one day somebody finally blew the whistle, and that an investigation revealed that the manager and GM and other people in the organization knew what was going on, and hadn't done anything about it. Let's say that even the team owner knew about it.

If you were Bud Selig and the powers that be at Major League Baseball, what would you do with such a team once the abuse came to light?