This article was pieced together from numerous interviews and court records. The record shows that Marcus in October 2000 transferred $1 million from a trust fund he had established for Marcus Paul. The money went to Fumo, sources said.

Sources said Marcus Paul had learned of the donation and transfer only months after her father died of pneumonia and liver disease.

In a 2007 complaint filed in U.S. District Court in Philadelphia by the fund's manager, Morgan Stanley, Marcus Paul said her father had made "unauthorized withdrawals" from her fund.

A panel of independent arbitrators, in a written decision issued in August 2007, faulted Morgan Stanley for its "failure to supervise and properly authorize the wire transfer of $1 million on Oct. 27, 2000."

The New York Stock Exchange appointed arbitrators, who said Morgan Stanley should repay Marcus Paul the $1 million, but that the Marcus estate should repay Morgan Stanley.

This month, Morgan Stanley paid Marcus Paul the missing million. The investment firm has been paid as well, according to probate records.

In addition, Marcus Paul, now 38, reached out through her attorneys to Fumo and asked for the money back, sources said.

Through negotiations, Fumo agreed to repay $300,000, records show.

Fumo suddenly disclosed the $1 million gift in his trial testimony Feb. 12. He did not mention that he had agreed to give some of the money back.

Fumo's pledge is embodied in a lien on his mansion, Philadelphia real estate records show.

The daughter will get the money as soon as Fumo sells his home, which has been on the market for 18 months. Despite cuts in its asking price, now $5.5 million, Fumo hasn't been able to unload it.

Emotional, not sexual

During his trial, Fumo's attorney asked him to talk about his ties to Marcus. Fumo then veered unexpectedly into tender territory, expounding to jurors about the nature of male bonding.

"Between men, you love men sometimes, not in a sexual way but an emotional way," Fumo said. "And we loved each other."

Talking of his relationship with Marcus, who was a dozen years older, Fumo added:

"Steve Marcus was the sweetest human being you would ever want to meet. He was a really nice guy. He was a philanthropist. Did a lot of anonymous philanthropy."

Along with the $1 million, Marcus' philanthropy included giving Fumo a jet-powered Hinckley Picnic Boat worth $500,000, a vessel known for its classic lines.

Someone close to the family said Marcus' daughters had not known their father had given Fumo the boat until they read about it in news coverage of Fumo's trial testimony.

Fumo testified that the friendship had developed quickly.

"He took a liking to me," Fumo said. "It was surprising to me in the beginning of the relationship how close we got. I was a little bit suspicious, quite frankly. And it just grew and grew and grew."