A New Jersey councilman with past ties to the Gambino crime family has been arrested on loansharking and extortion charges, with authorities alleging he operated an illegal lending scheme while serving in public office.
John Alite, 63, of Englishtown, was taken into custody Friday and charged with multiple offenses, including theft by extortion, corporate misconduct, usury and terroristic threats, according to the New Jersey Attorney General’s Office. A second man, Stephen Locrotondo, 67, was also arrested and faces usury and conspiracy charges.
Prosecutors allege Alite and Locrotondo worked together to issue loans carrying exceptionally high interest rates. Authorities further claim Alite threatened “to commit violent acts” as a way to force victims to repay the money. Investigators also say Alite used his business, Straightened-Out Entertainment, Inc., to help “promote his criminal scheme.”
Englishtown Councilman John Alite, a former Gambino crime family associate, allegedly ran an illegal loanshark ring while in office. (Thomas P. Costello/Asbury Park Press / USA TODAY NETWORK via Imagn Images)
New Jersey Attorney General Jennifer Davenport credited investigators with building the case, citing cooperation between the Division of Criminal Justice and the New Jersey State Police. “These arrests are the result of rigorous investigative work and the strong cooperation between the Division of Criminal Justice and New Jersey State Police, who work tirelessly every day in the pursuit of justice,” Davenport said in a statement. “Our office is dedicated to ensuring that all businesses conduct themselves fairly and lawfully. The conduct alleged in this case was anything but, and we will work to hold those who cheat and steal accountable.”
Alite was arrested on charges including extortion and conspiracy on June 19, 2026. (Albert L. Ortega/Getty Images)
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Alite joined the Englishtown Borough Council in 2025 after being appointed to fill an open seat. His move into local government came nearly 15 years after he was sentenced to 10 years in prison on racketeering charges. He had previously been associated with the Gambino crime family and was known as a former confidant of John Gotti Jr.
Englishtown Mayor Daniel Francisco urged the public not to draw conclusions before the case moves through court. “Every American is entitled to due process, including John. I will not rush to judgment before the facts are known, and he is entitled to a presumption of innocence while the judicial process unfolds,” Francisco told News Agency in a statement. “Based on currently available information, these allegations are not related to the operations within our Borough, and indeed will be resolved outside of it. In the meantime, our Borough remains focused on serving our residents, advancing downtown development, and delivering two great community events this summer.”
Englishtown Councilman John Alite speaks to a resident at the Englishtown Municipal Building in Englishtown, N.J., on March 21, 2025. (Olivia Liu/Asbury Park Press / USA TODAY NETWORK via Imagn Images)
It is unknown whether Alite will stay in his seat during the investigation. Mayor Francisco said, “John is an elected official chosen by the voters last year. The decision to continue in the position rests solely on him. The Borough and the council have no legal authority over his seat.”
News Agency reached out to Alite’s lawyer, Thomas R. Calcagni, for comment.
