So if he proves that he used illegal funds in the game, he’ll get the funds back? I assume he’ll have to pay those funds back to the business.
I read this as a suit by the bilked investors against the crook’s poker-playing buddies. I believe the law allows them an avenue to “claw back” their losses from the recipients of those losses, as the recipients were also engaged in an illegal activity.
Similar to what the goobermint is trying with Madhoff investors who got out early and lost only a little or even made a profit. In that case, however, the government will have a hard time proving that the receipients of the fraudulently obtained funds were themselves committing a crime, as if they knew Madhoff was running a scam or were part of the operation.