rule bender

I have an employee who is always trying to get around the the rules and procedures. At times it has put our office in a bad situation, with complanits and made our office look stupid. I have tried talking to the employee. I have done conunsling, written warnings, moving their office to a more exposed area and I sent them home with out pay for 3 days. The rumors I hear from other employees is,the rule bender is out to get us. The employee blames all their problems on others and dosn't understand why they are being singled out. This employee is very capable in their job, but keeps doing things that are not allowed in the office. What can I do to resolve this?

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