Child pornography ring is being investigated on a federal level, with Sandusky and other people "affiliated with Penn State" (no specifics yet) at the center of it.
EDIT: Update from the article- Both the FBI and a criminal investigative division of the United States Postal Service are looking into the possible existence of a pedophile ring that involved Sandusky sharing boys with other men connected to Penn State. Sandusky was recently convicted on 45 counts of child sexual abuse. "Investigators have interviewed at least one man who claims to have knowledge of Sandusky and a very prominent man, with strong ties to Penn State, both sexually abusing a boy," a source familiar with the situation told RadarOnline.com.
Edited for formatting.