DENVER -- The state-appointed custodian who was placed in charge of the Colorado Humane Society said the nonprofit shelter will close on Jan. 1. The fate of the animals still living at the shelter has yet to be determined.

The custodian, Rick Block, made the announcement outside an Arapahoe County court on Friday where the former owners of the Humane Society were facing charges of contempt of court.

Block was appointed by the state attorney general's office as custodian of the Colorado Humane Society in December 2008.

He told CALL7 Investigator Tony Kovaleski that the cities of Englewood and Littleton have contracted with a new shelter, and without that critical funding as a base, the Colorado Humane Society can no longer remain open.

The former owners of the Colorado Humane Society, Bob and Mary Warren, blame Block for the shelter's failure.

Bob Warren told 7NEWS that he believes Block ran the charity into the ground and that his $15,000 a month salary choked the shelter, financially.

On Friday, a judge determined there was not enough evidence to find the Warrens and their daughter, Stephanie Gardner, in contempt of court.

They were accused of violating a court order by not providing critical documentation about the shelter.

In 2007, while under the Warrens' control, the Colorado Humane Society was the subject of a CALL7 Investigation that exposed mismanagement of the charity including throwing euthanized animals into a Dumpster, even after the former pet owners said they had paid to have them cremated.

Experts explained that there was a danger to having animals killed with euthanizing drugs going to landfills where other animals, including eagles and coyotes, feed on the carcasses.

CALL7 Investigators also found a Mercedes, donated to the shelter for auction to raise money for the animals, was instead being used by the Warrens as a personal vehicle.

The Warrens maintain they did nothing wrong and hope to one day regain control of the Colorado Humane Society.