Reminds me of that old case in vegas when 11 girls were arrested at a private party. It doesn't just happen in small towns, I've seen this shit in vegas and LA too...
http://www.foxe.com/police-harassment.html
Unfortunately it's not about being "right", it's about dealing with a little brain in charge with the law on his side. They NEVER admit they're wrong and will stomp you into the ground until you submit.
good luck Melissa