So if the "South Florida investigators" have an active investigation under way on him as they state, why wouldnt they push the Feds to leave him on the street? I get it that the Feds wield the heaviest hammer, but this seems disruptive to anything the locals may have had going.

Merlino deserves it though IMO. I hope no one here is buying the "chance meeting" between him and Johnny Chang. Thats just laughable. Very brazen, but as has been said, this is prob a minor disruption in Merlino's mind.