A comment about your wife involving a story from a friend of mine.
This was about 10 years ago. My friend (let's call her K) was the BS in her marriage. The WH was truly sorry for what he did, he admitted that he had been a bad husband, in general, and he sought out to fix his ways.
The WH was a teacher at an elementary. The OW was another teacher at same the elementary school. He immediately requested a transfer to a different school... but that could not be honored until the next school year. So, he was more or less "stuck" working with the OW.
The WH did something very impressive, I think.
First, he went to the OW and told her that it was over and that they couldn't be friends. The next day, she sat down next to him at lunch... he immediately asked her to sit elsewhere. She replied "Hey, we can still be friends." He said, "No, we cannot. I'm sorry but my marriage is more important and because of our history, we can no longer be friends. We work together and some interaction is going to be required, but I want it to be as infrequent as possible."
Second, he went to the Principal and admitted the affair. He told the Principal that he regretted the affair and that he was trying to fix his marriage. He admitted everything and took responsibility. He asked the Principal for as much help as possible to ensure that the WH and OW had as little professional contact as possible.
I used to hate this guy because her hurt my friend. I admit to being cold to him at social functions and he might, in hindsight, agree that he "earned" my cold shoulder. In hindsight, now knowing what he did, I like the guy a lot better and I feel like I owe him an apology.
Anyway, the point being... THIS GUY did what he needed to do to give his marriage a chance. He did not make excuses. He accepted 100% of the blame. And did numerous, uncomfortable things that made him look awful... all for the sake of saving his marriage.
Maybe read this story to your wife?
On another topic, I am not a lawyer, but if her boss has already been accused of sexual harassment, then she is in fine shape, legally speaking. In fact, if she was a scummy person, I think that she would easily have a lawsuit against her boss and his company even if she had no retribution. She has been sexually harassed (even if she acquiesced), by definition (a boss cannot make any pass at an employee; the multiple events and even the masturbation after she refused... all sexual harassment).
Her company allowed a person who committed some previous act of sexual harassment to remain on staff... and then he did it again. If she is fired for reporting this, then she is in even better position legally speaking.
Most likely, she is protecting him from getting fired by her company.