That is a hard one, Em. I generally believe people should be given a second chance in life. However, I believe that child molesters are mentally afflicted. I have serious doubts that such an affliction can be cured or overcome. There are many pedophiles out there who have not been caught, and never will be caught.
My ex husband was molested by a long time friend of the family. My ex did not tell his folks about it until he was an adult. His parents refused to believe him, accused him of lying. The parents claimed the fact that the family friend had married and had children was proof that he was not a child molester! The really sad thing is that the parents of my ex never would have believed him had he told them about it when it was going on (when he was a child).
Maybe the topic can be discussed in a church group, how to protect the children in the community. Your neighbor is likely not the only person in town who might victimize children.