Im not so sure merlino is nearly as wealthy as many think. If you look at what he and his guys engaged in, there were no control of unions or large construction projects. It was primarily gambling and some shylocking. Not saying he was broke, he wasnt. However, he was no where near gotti, scarfo sr, ally boy persico, or even vinny basciano. In fact, i dont think he would of ever got past the rank of soldier if he was ever in new york ( if that). I can see him being around the colombo's for some reason.
Then again, the guy has balls, does his time, and can kill.