You just found out the problem with paper training - you now have to "un-train" your puppy.
When I trained my large breed puppy I decided to skip the whole paper training step (he is now a 90 lb lab) since picking up his substantial poops was not pleasant. I relied on taking him out LOTS of times and using a crate. His crate was lined with a comfy cushion and he treated it like his den or "safe place" long after we needed to use it. He never, ever soiled his crate.
My suggestion to you - crate or no crate - is to now be very conscious of your puppy's body language when he needs to "go". Start by taking him out every single time he eats, plus at regular intervals throughout the day. Pay attention when he seems fidgety or overly interested in how it smells behind that chair.... Take him to the same spot each time, if possible. You may need to bring out some newspaper for him to use outdoors until he's more comfortable. I know a number of people who have also taught their dog a "cue" word to make them go - pick one word or phrase, repeat it every time they go, over and over, and eventually the dog connects the word with the act.
I think that's a Colorado Potato Beetle larvae - not a nice bug! It is pesticide resistant, so hand picking is the best way to get rid of them. Your photo is a little fuzzy, so make sure it's not a good bug before you take action. Here's some information: http://en.wikipedia.org/wiki/Colorado_potato_beetle Check out the photo of the larvae to make sure.
FYI, this is a picture of a ladybug pupae, which looks a bit similar. You want to keep this one around to eat the baddies: http://en.wikipedia.org/wiki/Image:Ladybird_Pupate.jpg
