There are werewolves who are members of our faction, or allied to us. We don't 'set them loose' on anyone, though. Our werewolf citizens don't go about trying to bite people even when they're not transformed, either. Using them as weapons is not a method we employ.

I'm not at liberty to speak to Lucius Malfoy's current situation. Consider though, that he was imprisoned in Azkaban by Voldemort himself, and his son is a member of the Order of the Phoenix in high standing.