Help with a lying child

I have a stepson living with us, we are a big family of 6 (4 kids, and me and my husband). My stepson came to live with us in 2006 and we have had nothing but problems out of him. He is only 8 years old, and he constantly lies to us amongst other things. I have caught him "touching" all 3 of my kids in inappropriate places and his behavior has plummeted in school. He gets in trouble at school at least 3 to 4 times a week. We are at our wits end with him! We have tried everything we know for discipline and frankly nothing has helped. We have spanked, grounded, taken privileges away, pretty much everything we can think of and so far nothing phases him. He simply does not care! We have sat him down many many times and asked him where is this coming from, especially the touching. He swears up and down no one has done it to him, and I really don't think anyone has because this started at a very young age. Things have gotten really stressful at home because of his behavior. We can't trust him to tell us the truth about ANYTHING, and he's a really good fibber too! I can't believe such a young child can be so deceptive, and I am wondering where it all comes from. I know his mother never spanked him, but then again, she was hardly ever around. She always pawned him off on other people, and when we took him from her, she had just gotten out of jail for truancy. He was tardy at school 76 times, and absent 16, and that is when we stepped in. Ever since he has come to live with us, it has turned our house upside down. I can't trust him around my other kids (who are 6,3, and 2), I can't believe a word he says, and it is causing problems in our marriage. What can we do?

[oprahrider]

Wow I suddenly don't feel so bad about my situation. Sorry I know that is no help. The lieing and doing poorly in school is one thing. The touching the other kids will in fact damage them....Sorry but I would ship his confused *** off to Military School ASAP. You simply cannot risk the mental health of the younger kids. Harsh I know. But Ive always cut through the BS and arrive at the logical solution. I hope your husband will be supportive and I can assure you that a few years in Military School will in fact straighten him out. It will be best for everyone.  

[imanaddict]

Hi, and thank you for your concern. I would GLADLY ship him off somewhere if it were an option, but he's only 8. I need to say that again because I still can't get over the fact he's only 8 and does the things he does! It blows my mind!