Your legal rights are to put him out of the house and based on the threats of violence you need to go to court and get a restraining order against him on behalf of his brother and this will mean he cannot enter the home. Unfortunately, he has bought drugs into your home which means that if the police ever do show up, you can be equally liable for the drugs in the home as he is and you could even lose your home to an asset seizure. It is time to execute a little bit of tough love.
As far as the money, it is proceeds from illegal activity, it is not like he could actually sue you for it. However, to avoid any issues with him doing something stupid like filing suit and admitting it is from drugs or even worse, committing an act of violence and going to jail whether you like it or not, you should pack his things, get the restraining order and on his way out of the door, give him the money and just bar him from your home, since you do not want the police involved.
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