So if he bought a car the car dealer must “pay back” the money?
What about a restaurant he ate vat? Does it have to “pay back” the money?
Etc...
No, in that case the Feds have the car, as indeed they do, and are selling the car to help make restitution to the defrauded parties. If the fraudster spent the money at a hotel, that’s just considered unrecoverable. The hotel rendered services and were paid for them. But if a wealthy church with millions of dollars in the bank received the money, that’s certainly recoverable. Again, this is not breaking new ground, legally. They are going to have to pay this money back.
The difference her is there were no services received. It was a donation to a supposed church.