Whoa. That's crazy what happened in your neighborhood. I think that when it gets to the point that a minor is simulating a very specific adult sex act, it's clear they have likely been exposed at some point. The fact that this child was bribing others to engage in the act is a huge red flag as well. I suspect that kid was abused himself.
As to your question, it is a good one. I hadn't really thought about it. The decision to prosecute a case is made by the state on an individual basis, so it is definitely possible that he may have been diverted to treatment instead of the criminal justice system.
Yes, kids are supposed to be obedient, but not blindly. Teaching blind obedience robs children of their critical thinking skills and can be dangerous. It specifically can lead to children "obeying" dangerous adults and teens and can even be fatal. The Duggar parenting model crushes independent thought and creates the perfect victim:
Children most susceptible to sexual abuse have obedient, compliant and respectful personalities.
https://www.aap.org/en-us/about-the...-Child-Sexual-Abuse.aspx#sthash.B957RYqV.dpuf
Preventing Sexual Abuse
If a child taught what's "okay" and what's "not okay" and they are self-confident, they are less apt to fall victim to the wiles of a sexual predator and more likely to report an incident should one occur. Several steps can be taken to protect your child from sexual abuse. Educate your children about their bodies, and what constitutes sexual abuse.
* Telling children that "if someone tries to touch your body and do things that make you feel funny, say NO to that person and tell me right away"
* Teaching children that respect does not mean blind obedience to adults and to authority, for example, don't tell children to, "Always do everything the teacher or baby-sitter tells you to do"
* Encouraging professional prevention programs in your local school system
http://www.loveourchildrenusa.org/sexualabuse.php
Blind obedience which flattens the decision making ability of individuals by demanding an authoritarian submission to the stringent rules, legalism, and pressures of a group or leader create the conditions that are the same as those who produced the Nazi Holocaust. Rather than fostering the growing discernment of the individual and by teaching moral codes such as Christian principle to inform that discernment, cultures of blind obedience punish and crush liberty and independent choice which God even offered individuals under the Old Covenant (Joshua 24:15). On a personal level, Bradshaw who speaks from experience notes that if we do not do our own personal moral work as we grow into adulthood, we run the risk of falling into rigid black-and -white thinking, an immature understanding that polarizes the perception of right and wrong. Vyckie Garrison notes aspects of this through the patterns of extremes followed in the Quiverfull Movement, and in terms of development, psychological splitting describes this primitive way of perceiving the world.
The Quiverfull/Patriarchy Movement (QF/P) offers all sorts of formulas which drive its culture of obedience and requires followers to develop an external locus of control by thriving on comparison and merging one's identity with the group. (Please read more about the Locus of Control at Overcoming Botkin Syndrome.) The Holy Spirit guides a Believer in liberty (Romans 8:1-7, Hebrews 10:16-18), and with ethics informed by the Word, and the Chrsitian does the daily, hard work of discernment when faced with life's dilemmas. In contrast, the culture of obedience creates some idealistic promise that offers some benefit to people for selling out to the “greater good,” promising to alleviate followers of the stress of decision-making with ready-made, foolproof formulas for success. Just like Adolf Hitler offered a convenient solution to the “Jewish problem” and the struggles of a shamed German people following WWI, child training experts like Pearl, Ezzo (Babywise), and even Bill Gothard promise fool-proof formulas that solve the problems and pitfalls of parenting. Bradshaw states that “blind obedience requires no real intelligence” (pg 228).
http://undermuchgrace.blogspot.com/2011/04/why-good-people-make-dangerous-choices_8699.html