AURORA, Colo. -- The third time was James Craig III's last chance.

Up until Monday, he had been able to keep working around children, despite two previous contacts with police on sex-related allegations.

In 2001, Parker police contacted him initially in connection with a sex assault in a domestic violence case. Craig pleaded guilty to a lesser offense, completed the terms of a deferred sentence and was able to keep the conviction off his record.

On Aug. 21, a woman in his neighborhood near E-470 and Jordan Road claimed she saw him expose himself.

He was cited on suspicion of indecent exposure but the case just went to court Wednesday, along with the more serious sexual assault charges stemming from the gymnastics allegations.

Both previous incidents were unknown to his employer at Saddle Rock School of Gymnastics, though the information was available to the public.

In fact, TheDenverChannel has learned, these cases are often the toughest for law enforcement, which is not required to report the citations or arrests to the suspect's employer.

"It's a judgment call," said Detective Bob Friel, Aurora police spokesman. "We have to balance public safety with an individual's rights."

Friel said that detectives will choose to notify an employer, even a private one, on a case by case basis if the suspect has ongoing contact with children, and if the allegations suggest others may be at risk.

In fact, the law only covers other educators.

"His employer would not necessarily be notified," said Lance Clem, spokesman for the Colorado Bureau of Investigation. "Private schools -- different category altogether. So there is not a process for them. We only do what's required by statute. And the statute covers public schools."

An applicant pays $39.50 for a background check when looking for work at a public school district.

If that person is arrested or cited for any crime, other than a traffic ticket, the CBI will call the district to let them know about the alleged offense, Clem said.

A typical criminal background check, covering only Colorado arrests and criminal citations, costs $6.85, Clem said.

But it can be confusing, Clem said, and a CBI staffer is available by phone 24 hours a day to help with questions. That number is 303-239-4208.

TheDenver Channel has learned Craig is no longer working at the Saddle Rock school, telling his boss by phone Thursday he wouldn’t return.

Tyler Salazar, one of the gym's owners, said he did not run a CBI background check on his friend, but will do so now on a consistent basis with all employees.

Security cameras will also be added, both on the inside and exterior of the building, Salazar said.

This is the text of the letter sent home with parents at the gym on Thursday:

"As you may be aware, this past Monday Coach James Craig was arrested on charges that he inappropriately touched a student during a private lesson. As you can imagine, we were shocked to learn of this incident. We want to inform you that Coach Craig will no longer be coaching at our program.
Please rest assured that the safety of the students in our program is and always has been our top priority. We value your business and loyalty and thank you for your continued support. Of course, if there are any questions or concerns please do not hesitate to speak to management."