Butterworth had asked the appellate court to overturn Orange Circuit Court Judge R. James Stroker's ruling in January. Stroker agreed with Veigle's lawyers that the state hadn't proved the money was tied to alleged prostitution or illicit drug sales at Veigle's Rachel's clubs in Casselberry, FL or in south Orange County.
The five-member appellate court, without comment, upheld the lower court's decision. Veigle has been battling local and state law enforcement agencies for the past five years.
In October at a scheduled criminal trial, he faces charges of racketeering, conspiracy, prostitution and money laundering. Veigle vigorously denies the charges.
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