The best thing (for both children) is to have each seek legal representation, ideally someone who specializes in juvenile crimes.
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I hear your stress and anger and suggest that the family come together to hire the best criminal defense attorney for your cousin. The soon the better. Good luck.
I agree with my colleagues. I also believe that when people say "there is no evidence" it is a very subjective opinion. If "there is no evidence," it will not get past a preliminary hearing. Regardless, he needs an attorney.
This is not intended as individual legal advice and there is no attorney client relationship established by this answer. It is advisable that you seek individualized legal assistance. This is not a substitute for hiring an attorney.
You have little to no control over the District Attorney's decision to prosecute. However, if there is truly no evidence the case should be dismissed at the Preliminary Hearing level. Retain an experienced Criminal Defense attorney, and get ready for trial. Good luck.
I write only to add that her statement is "evidence." So when people say there is "no evidence" they are usually referring to medical evidence or eyewitness testimony, which is not always present in sexual assault allegations. He needs an attorney now.
Your cousin needs representation by an attorney experienced in criminal defense and the juvenile system. If he is petitioned into juvenile court, he will be assigned a public defender if his family cannot afford to hire a private attorney. From the polygraph information contained in your question, it seems as though an attorney may already be involved. Even though polygraphs are inadmissible in court, the results of reputable polygraph examiners are respected by prosecutors and do influence there decisions. I wish you and your cousin the bes of luck.