Without this, you're not a cop
Found in the pocket of some discarded clothes.
Taken by Cunningham later in the game.
Devil's Pitstop, shack C, in the clothes found on the bed.
Silent Hill: Downpour
Silent Hill: Book of Memories
The Police Badge is an item that is found in Silent Hill: Downpour. It can be found in Shack C of the Devil's Pitstop in a pile of clothes on a bed. It is taken by Anne Marie Cunningham in the later portion of the game.
It is also a collectable artifact in Silent Hill: Book of Memories, described as "A slightly-dented police badge." It is found Zone 7+ (rooms) and Zone 50+ (shop).