I find the current "witch hunt" mentality in this country to be very disturbing.
I say mind your own business—don't send your kids to him if they're under 17, and if you have evidence of any further crime on his part I'm sure the police would be quite interested...but otherwise leave the guy alone. I'm guessing that CFII isn't all that close to the top of the list for 'dream child-molester positions', and you can pretty much draw a parallel between just about any job and the possibility of exposure to children.
What would you prefer? A public stoning to satisfy the mob and to protect our fat, unhealthy, overprotected children from his potential recidivism?
Now if you run a flight school and are hiring CFIs, then like any other institution common sense liability rules apply.
As an ice hockey official I have to get a background check every two years because I might somehow be in a position of authority over a youth player. I haven't quite figured that one out yet, but I don't really care—it's their risk management policy, and it's fine by me. I also stay out of closed rooms with minors—that's MY risk management policy. :>
But all that aside, what exactly do you expect? He's "paid his debt to society", as the saying goes.
By the way, your avatar is for a kids show, and you seem to know a lot about pedophilia.
A little suspicious, if you ask me!
~Fox
(PS. Not really.)