You are not over reacting...huge, huge red flags on this for me. I copied the below quate from
http://www.findcounseling.com/journa...ual-abuse.html
Examples of child sexual abuse:
Digital (finger) penetration; Exhibitionism; Fondling a child's genitals; Having intercourse with a child; Having oral sex with a child; Having sex in front of a child; Having a child touch an older person's genitals; Incest; Masturbation; Oral-genital contact; Prostitution; Rape; Showing an adult's genitalia to a child; Showing X-rated books or movies to a child; Sodomy; Using a child in pornographic production of any kind.