If a thief gives all the stolen money to their friend/family/charitable organization/etc. who has no idea that the money is stolen, and he gets caught, can the money be taken back?
I know that if the prosecution cannot prove the recipient knowingly took stolen money, they cannot be charged guilty. But can that money still be taken away? If not, this could be a huge loophole (e.g. corrupted politician donates to PAC, parents steal money to give their children). But if yes, it's not fair to take money away from someone who's done essentially nothing wrong.
My question is also: Has a case like this happened before? I assume giving stolen money away is not uncommon.
Edit: What if it's not a gift but a purchase; can the seller be forced to take the item back and return the money? What if the item is not tangible hence not returnable (for example, doing a favor)?
Edit 2: Okay, it seems like the seller must give up the money. Then does it mean every seller needs to scan the buyer to suspect whether he or she is a thief? That sounds like a real nuisance. If I sell something on eBay, there's no way I could reasonably know if the money is clean. Is there some legal protection for good faith sellers?