Arson investigation underway at Philadelphia cheesesteak shop co-owned by former reputed mob boss

PHILADELPHIA (WPVI) -- Authorities are investigating an arson at a South Philadelphia restaurant co-owned by one of the city's most notorious convicted mobsters, Joey Merlino.

Police received a 911 call just after 2 a.m. Thursday about a small fire at the location formerly known as Ace of Steaks on the 3000 block of South Broad Street.

At the scene, firefighters quickly doused the flames. When police arrived at the scene, they reportedly recovered multiple Molotov cocktails inside.

Merlino, the reputed boss of a Philadelphia crime family, posted on X in March that he was planning to open a new cheesesteak spot called Skinny Joey's Cheesesteaks - a reference to his nickname.

Due to his connection to the business, investigators say they're keeping a close eye on this case.

"Certainly this raises questions and I think it's going to raise the interest of law enforcement in Philly, including the FBI," stated J.J. Klaver, a former Philadelphia FBI agent.

In the 1990s, the FBI claimed that Merlino unseated the then-reputed boss John Stanfa.

Klaver described that time in Philadelphia as a war.

"It was a pretty busy time for agents working organized crime," he said.

After several stints in prison for convictions, including racketeering, extortion, and bookmaking, Merlino is now a free man.

Police say now he is not only a business owner, but possibly the victim of a crime.

Merlino is said to split his time between Philadelphia and Florida. He's recently found success with a podcast called 'The Skinny with Joe Merlino.'

It's not clear how far along Merlino and his associate are with renovations of the cheesesteak shop. Authorities say it only sustained minor damage from the fire.

Police have not said if there are any suspects and there are no cameras close to the building.

It's unclear why the restaurant was targeted and the motive remains under investigation.

Action News reached out to Merlino and his attorney for comment on this case, but neither wanted to answer.