Collecting a Wire Transfer in Somebody Else's Name, With Permission

So I picked up cash for a friend at a western union yesterday and it all went fine. I didn't need ID because he had a test question and answer. Subsequently, today, I attempted to do it again for him and was told by the clerk (that knows that's not my name on the paper) that not only was she unable to process my request today but I have to return the money from yesterday back to her or there would be cops coming to my door... It was only for $250. I don't see how it's that serious. He isn't going to give me the money back so she basically expects me to pay it out of my pocket? And then where does it go, back to the sender? It's all confusing to me. Do I really have something to worry about here?

Let's call your friend "Joe Smith". When you collected the money did you say, "I'm Joe Smith", or did you say, "I'm Peter Pan and I'm here to collect Joe Smith's money - the answer to his question is 'Tinkerbell'"?

Presumably Joe Smith wants the second transfer of funds, so how about having him truck his behind down to Western Union with you, ID in hand, to inform the clerk that he got his money.

I'm not going to be able to produce him because there is no, "Joe Smith". It was just a made up name to conceal identity. The money was actually sent purposely to me.

Lying to us doesn't help us figure out how you might resolve your issues.

How did they figure out that you were lying to them?

They know me. I have used their service before with my ID and everything. If I knew it was against their policy to collect funds for someone else I would have never went there. I figured it was fine to pick up cash for a "friend". Once they told me it's illegal and I have to give the money back I knew I was screwed because I could never produce the person I was supposedly picking up for.

It clearly says in their TOS, identification at some locations may be required.