A similar story occurred last year, in the San Francisco area, from what I remember. The animal got away somehow (through no fault of the owner, I believe), and the new family wanted to keep it because they became "attached" to it after a very short period of time.
Similar public outrage occurred, and the animal was soon returned to its previous owner. With the outrage expressed here (and maybe some cash to entice this cruel woman to give up the dog), I'm sure the dog will eventually go back to the man who had to evacuate.
Unfortunately, the public outrage is pretty high but not high enough for this woman. If you view the video clips at the link you'll see the outrage is pouring in, but the lady is just hiding behind her locked door. Maybe picketers at the foot of her driveway would change her mind.