I salute you for your dedication to teaching, and yes, you did handle the particular incident with this troubled student well. However, speaking as an educator myself, I think there are red flags in his behavior that are strong indicators of sexual abuse. I don't know what state you're in, but in California as a mandated reporter, you would be expected to make a report on this -- and not just to the counselor, but to the appropriate authorities. I know, its a step none of us wants to take, but in this case I don't see it as an overreaction -- it could be lifesaving.