The WTS knew the guy was a child molester from 1993.
See http://img42.imageshack.us/img42/4530/wtsreminderlettertofrem.png
The North Fremont elders knew at some point between 1993 and 1998 that he'd been reported to the legal authorities and a police report made about an incident that occurred prior to 1994. The conviction under code 243.4c matches what we know about the step-daughter incident.
See http://img819.imageshack.us/img819/7021/freemontboelettertowtsa.png
When Candace was (according to her testimony) getting 'bear hugs' from a divorcing/recently divorced and an alone Kendrick, and was sitting on his lap at meetings after c. 1994, this should have been a red flag to the elders who were aware of Kendrick's recent history, and something should have been done.
More random thoughts HERE.
I'd be interested to know why the step-daughter didn't come forward as a witness. The mother said that she (the step-daughter) told the elders more happened than just accidental touching. The BOE letter in 1993 and the elders' depos don't reflect that information.