Calgary police say there were a lot of inconsistencies after checking out an animal abuse complaint last week.
Alyssa Hatfield and her fiancé Cameron Edmonds claimed their missing husky-cross dog Radar was found several blocks from their home in Whitehorn with its paws and muzzle bound.
But after several interviews with the dog owners and neighbours, police say the story didn't hold up.
Staff Sgt. Brad Moore says the focus is now on a website set up by someone else to collect donations.
"We're looking at potentially having all the money returned going forward," he said.
"So if anybody has donated is looking for money please get a hold of us or if they know how to get a hold of that website, get a hold of that website, and we can make some arrangements from that point."
More than $1,700 was raised on an online fundraising site for the dog's vet bills.
Owners release statement
Hatfield confirmed in a statement that they will be returning all funds to anyone who donated because of the "applied allegations by police."
"It is not because we have done anything wrong but because of this misperception," she said.
Police say they are still looking for a motive for the abuse report and continue to investigate.
"We are disheartened and discouraged by the police report because we have told the truth and our reputation has been questioned," said Hatfield.
"We would never make something like this up."
Animal abuse has been a high-profile issue in Calgary since a starved dog and cat were found dead in a Calgary alley with their mouths taped shut.