It may depend on who enbezzled from who, e.g. was there a fuduciary duty etc, but Probably the tax evasion. Evasion is rarely prosecuted though. They'd rather have slaves who work and pay, than inmates who don't.
I haven't looked at this since law school, but do you get to claim a loss if the victim gets a judgment for the money or you're otherwise ordered to pay restitution? If I recall, expenses and losses from illegal activity are generally not deductible.
Forgive me, but I don't recall all of these rules because I don't work for crooks and I won't touch anyone in the weed business with a ten foot pole.