This usually starts with a call to your local county Social Services agency (or a call to the police, if you think the children are in immediate danger). Social Services is responsible for investigating reports of child abuse or neglect. If they find sufficient cause, they can remove the children from the home. The children will then normally go to a temporary group home until the matter can be heard by a judge. The judge will decide (in what is called a "disposition hearing") whether or not the parental rights should be limited and to what degree, and social services will make recommendations to the judge about where the children should be placed. Generally, family members are favored as placement homes, but the court will also consider non-family (family friends, etc.) in many cases. It's best to have Social Services on your side if you have an idea of where the children should be placed. If suitable placement can't be found, they'll likely end up in foster care. If you're generally concerned about children in this situation and want to help, you can become a Court Appointed Special Advocate (CASA) volunteer -- a person who helps track, support, and befriend children in the dependency / foster care system. (http://www.nationalcasa.org)

Call social services and ask them to step in. That is their job. No need to disclose information, it's for the benefit of the child. A child that cannot protect themselves. After the child has been taken by social services you can apply through them to take custody. Without the intervention of social services the situation will likely not be able to move forward. They will need to intervene in the courts in any case.

The problem with people today is that noone wants to get involved. Dont make waves. Screw that! I admire you & your husband, do what it takes. Maybe start w/an intervention, warning that the next step will be to lose their children. Try to get them to understand, that we as parents, as americans have a responsibility to raise (our) children to be good,honest people. To protect (our) children, to let them be children. If that dosn't work. Call CPS & find out what you have to do to get custody! Good Luck!