Who paid for the fraudulent charges on my credit card? and how do they know I didn't visit the strip club?

This happened a few years back. Some fraudulent charges were made on my credit card – two $400 dollar charges to some company “B.G. Enterprises” or something like that. When I called my credit card company about it they informed me this company runs a couple of strip clubs near me.

Everything worked out fine, but it always made me wonder. Some jerk apparently had a great time at the strip club, did the credit card company just pay for that? After my claim is settled do they pursue legal action with whoever made those charges? How do they know I didn’t have a wild night at the strip club and then make a fraud claim?