Potty Training Not Working... Please, Help!

[nikkileigh]

I have an 8 month old German Shepherd Mix puppy who I adopted 5 months ago. Since then, my boyfriend and I have been following crate training by the book but he still pees in the house daily (sometimes multiple times a day). We put him in his crate, and we only let him out of the crate if he goes potty outside first. If he goes, then we reward him and bring him inside for time outside of his crate. If he pees in the house, we tell him no, take him outside, and put him back in his crate. When he pees in the house, he doesn't go the door, whine, or anything. He just pees right in front of us. The other aspects of his training are going very smoothly, except this. Lately, he has started peeing on fabric (...so that we don't realize he's gone inside?) and this afternoon he peed while lying down on the rug. He knows that what he is doing is wrong because when we catch him he will hang his head and go to his crate. We thought about a medical problem, but we know that he can hold it because he never pees in his crate and has held it for well over 12 hours before. The other day, however, he saw that our new puppy had an accident in her crate and was let out while we cleaned it up. So, he stood up in his crate and peed as if he thought he would get let out as well (he has not peed in his crate for months.) Please, help! This is getting VERY frustrating and I don't know what to do.