What you describe sickens me. It seems to be that from here on out the new standard is "guilty until proven innocent" (especially for those wearing the "target" on their back of being a cop). A former partner of mine went through a somewhat similar event; it ended poorly for him. Fortunately, he has the standing and the financial ability (thank God) to pursue a J.D. I can only imagine how litigation will be effected when he gets done in a couple of years and returns to the system.
And LE agencies are wondering why there is suddenly a precipitous drop in personnel availability and positions going unfilled.