Brian Spillane, 66, is one of several men alleged to have forced students at St. Stanislaus College in Bathurst to engage in group sex, prosecutors said in Downing Center Local Court in Sydney.
Students allegedly were hypnotized to have sex with teachers, lead prosecutor Bath Walker said, calling the former culture at St. Stanislaus a "picture of rampant pedophilia." The allegations against the men date to the late 1960s.
Spillane was freed on $20,000 bail despite prosecutors' arguments he was a risk to children, the Australian Broadcasting Corp. reported.
St. Stanislaus is a Roman Catholic day and boarding secondary school for boys run by the Vincentian order. Spillane worked as a priest within the order until 2004 when he left the Vincentians and began living privately in Sydney, authorities said.