Is it permissible to give ill-gotten money to a needy brother with the intention of giving it to him as charity, since it is impossible to return it to the government entity that owns it?

You are not permitted to donate the money as charity unless you despair of delivering it to the rightful recipient. It is necessary to inform the responsible party to cut it off or to authorize you to benefit from it as a gift. If it is impossible to return it, do not give it as charity to your brother unless he is poor and in need. He is allowed to benefit from it if he is poor, and he is allowed to take from it what suffices his need.