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I am sorry for this dilemma.
It is likely that this person (the one who served prison time for statutory rape) is required to register. SO that begs the question...can she have the kids around him?
It is not a problem from his standpoint...that is, unless he is on parole with conditions that prevent him being around children, there is no law which would prevent him from being around the children.
That said, mom could be held responsible for this. It is possible that the state, via their child protective services department, could take steps to remove custody from the mom. CPS would need to go to court and convince a court that mom is a danger to the child...but if she is exposing the children to a sex offender?? It may be the court agrees and removes custody.
Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.