Laurie, this situation is wrong no matter how you look at it. My own opinion (and keep in mind that I have NO legal training at all) is that the actions you describe are sexual harassment. At the very least, they are a form of bullying. If nothing is done concerning that, then you have, I think, legal recourse. You need to talk to a lawyer about that, but first, I would document every effort you make to resolve the issue by use of the chain of command. That means talk to the teacher, then the administration, then the district office.....so on.... Keep a record of it all. When and only when you have done all this would I take it to an outside agency.
Sadly, small towns can be "closed" societies and "outsiders" can be viewed with suspicion and treated badly. If you are facing such a situation, you might want to consider relocating. Not an easy choice, I know, but I recall my step father having issues with some of the "good ole boys" in a small town where he lived and he endured everything from having his electricity shut off with no explanation to having a fire hydrant opened in the street and the ensuing flood of water nearly filling his basement. It got pretty ugly.