No criminal charges have been filed against the Rev. Bento Fraga, and the priest has denied the allegation.
Diocesan spokesman John Kearns says the complaint involved a minor and occurred nearly 30 years at a private residence in Taunton.
Kearns says the allegation first surfaced in January and a probe by a review board found it to be credible.
Fraga retired in 2005 after serving as a priest at seven parishes in southeastern Massachusetts.
The diocese has sent notices to all of the parishes and by policy has referred the allegations to local prosecutors.
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