MOLALLA, Ore. - A Molalla police officer pinpointed as a problem cop, but who has remained on the payroll for several years because he kept appealing over and over again, has lost his badge.

The problems for Ron Lister (pictured on the right in uniform in 2006) began when the district attorney in Clackamas County said he believed the officer had lied in at least four of his investigations.

The district attorney's office refused to hear cases that Lister was involved in.

The police chief tried to fire Lister but he appealed over and over again. 

So Lister ended up in a kind of law enforcement limbo.  He kept his $58,000 a year job but could not make any arrests or issue tickets and the police department could not let him go. 

So what has he been doing for the past four years?

"We found work for him to do," said Molalla City Manager John Atkins, Jr.  "We asked if the school district would be interested in having a liaison officer and they weren't interested in that opportunity so we've been having him handle paperwork and odd jobs around city hall. And very frankly, we've often ran out of things for him to do."

And as Lister spent his days at the police station, the city ended up having to pay overtime so the rest of the police force could patrol town. The department is 20 percent over budget.

Police officers are difficult to fire.  There are appeals and arbitration - a process that can take years, like what happened in Lister's case.  Now, regulators in Salem have stepped in and officially pulled his badge.  Atkins said he has been suspended without pay as well.

"Well, I think and hope this is the final chapter," said Atkins, who said he hopes that Lister never wears a police uniform again.

We spoke to Lister briefly on the phone but he did not want to talk.  Instead, he referred us to his attorney, who did not return our call.

The city manager said he expects Lister to appeal one more time but doesn't expect him to succeed.

The total cost for Lister's case, factoring in attorney fees and overtime, is nearly $500,000.