> When fraud happens those affected don't usually get their money back much less a return on that money.

He defrauded and stole money from the investors in the pharma company to repay the people he defrauded and stole money from in the hedge funds. The one set of victims getting a return only happened by stealing returns belonging to the other set of victims.

> However, it's pretty clear what he did is also fraud (false documents, not returning people's money when they asked for it) even if the fact that investors came out better makes the plaintiffs less sympathetic.

Criminal cases have separate prosecution and victims, but not plaintiffs. It's the victims (well, one of two sets of them) that are potentially less sympathetic for the reason you describe.