But Paul Tyson continues to deny the allegations.
The 62-year-old said the suggestion he might be Santa in disguise was popular among his pupils because for all but three years of his 43-year teaching career, he has had a big, bushy beard.
Mr Tyson said he grew it while touring Europe in a VW Kombi van in the late 1970s.
''I couldn't be bothered shaving every morning.''
Last month, he told pupils at the school he would shave off his beloved beard if they raised $1000 for the Cancer Society.
To his surprise, the school got behind it and raised more than $2500 for the charity, which meant his beard came off for the first time in about 40 years.
The beard has since grown back to its full glory.
''I needed to grow it back because I'm playing Santa at a couple of Christmas events next week.''
At the end of this year, Mr Tyson will retire from teaching.
He has taught at Surrey Park Primary School, Tweedsmuir Intermediate, Lithgow Intermediate and Turakina Primary School, and has been principal at Fairfax Primary School, deputy principal at Otautau Primary School, principal at Quarry Hills School and acting principal at Kenmure Intermediate when it was merged with Kaikorai Valley College.
Mr Tyson has been at Kaikorai Valley College for the past 17 years and has become a successful home-room teacher and the teacher in charge of the home-room department. More recently, he has taken a range of junior and senior mathematics classes as well as being on the senior management team of the college.
He also has a very long association with the New Zealand Educational Institute and has been heavily involved in extra-curricular activities, both for the school and for local and national sporting organisations.
He was recently made a life member of the New Zealand Children's Athletics Association and has been heavily involved in the Otago Referees' Association.
He said the highlight of his career had been feeling like a welcomed member of the communities he had worked in, and watching his pupils grow into young adults.
''Seeing articles in the newspaper about them succeeding ... having them come up to you in the supermarket and say `hi' - it's nice.
''I'll miss the kids the most when I leave.''
In retirement, he will continue to be involved in athletics and training/assessing younger rugby referees, but he is happy to make a complete break from teaching, he said.
While he has no long-term plans for retirement yet, Mr Tyson said he planned to travel.
First on his list of places to go were China, Italy, the United Kingdom and the United States.
''Travel is a New Zealand bug. It's a bit like climbing mountains - you do it because it's there.
''I've never been to China before, so I'm really looking forward to that.''