I saw this article and I was wondering "moral absolutes" as well. Kind of, actually most things could qualify!
I was beyond disgusted.
I have my suspicions about the guy. It could be he was used as a cover because of his clean record, nevertheless, that does not give the police the right to seize the money without any just cause. If they can't demonstrate guilt, he should get it back, with interest and legal fees reimbursed, IMO. If they want to watch the guy and nail him when they had a solid case, OK. But there is too much of a risk of doing it to a legitimate citizen, unlikely as it seems, to justify this kind of behavior.