Members of the panel, which was set up by the Maitland-Newcastle Diocese to investigate and assess allegations made against priests, also believed that one of their own disclosed information to Father O'Hearn, a police statement said.
Father O'Hearn, 49, of Raymond Terrace, will face Newcastle District Court next week after he was committed for trial on Thursday for 17 historical child sexual assault allegations relating to five complainants.
Helen Keevers worked for the diocese's child protection unit and was on the panel that was asked by Bishop Michael Malone in 2004 or 2005 to investigate Father O'Hearn, her statement said.
A panel member was asked to investigate, but declined because they were friends with Father O'Hearn.
A private investigator was hired, but he told Father O'Hearn's friend: "Tell your mate there's nothing to worry about," Ms Keevers' statement said.
Father O'Hearn's friend told the panel about that disclosure and a private investigator from Sydney took over the investigation.
He found that there was no substance to the allegations against Father O'Hearn.
Father O'Hearn later told Ms Keevers that the first private investigator told him he had nothing to worry about.
Members of the panel believed that the friend also discussed the investigation with Father O'Hearn and disclosed information to him, Ms Keevers' statement said.
SIC: NH AUS