Former Gambino associate turned New Jersey councilman accused of running loansharking ring while in office

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 waving as he leaves the Municipal Building.

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.”

John Alite standing at Skybar during a birthday pre-Oscar soiree in West Hollywood

Alite was arrested on charges including extortion and conspiracy on June 19, 2026. (Albert L. Ortega/Getty Images)

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 speaking to a resident outside a municipal building.

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Mother Accused of Shooting 11-Month-Old Son to Prevent Father From Gaining Custody - Internewscast Journal

Mother Accused of Shooting 11-Month-Old Son to Prevent Father From Gaining Custody

A mother who abducted her 11-month-old son later shot the infant in…
CAIR School Guide Sparks Outcry Over 9/11 and Bin Laden Claims - Internewscast Journal

CAIR School Guide Sparks Outcry Over 9/11 and Bin Laden Claims

The Council on American-Islamic Relations, described as the largest Muslim charity in…
California woman who plotted stepdad’s murder as teen granted parole after 20 years in prison

California Woman Wins Parole After Teen Stepdad Murder Plot

A California woman who helped plan the killing of her stepfather when…
Jerry Sandusky Wins New Evidentiary Hearing After Accuser Recants Testimony - Internewscast Journal

Jerry Sandusky Wins New Evidentiary Hearing After Accuser Recants Testimony

Jerry Sandusky, the former Penn State defensive coordinator convicted of sexually abusing…
Trump Slams Kathy Hochul Over Refusal to Recognize Lake America in New York - Internewscast Journal

Trump Slams Kathy Hochul Over Refusal to Recognize Lake America in New York

President Trump lashed out at New York Gov. Kathy Hochul on Friday,…
Denmark's left-wing PM warns: 'Big enemy has started to grow from within' as Europe faces migrant reckoning

Danish PM Warns of Growing Internal Threat as Europe Confronts Migration Challenges

Danish Prime Minister Mette Frederiksen, a prominent figure on Europe’s center-left, has…
Erie County Cancels DHS Job Fair Over ICE Participation, Sparking Backlash: ‘Totally Inappropriate’ - Internewscast Journal

Erie County Cancels DHS Job Fair Over ICE Participation, Sparking Backlash: ‘Totally Inappropriate’

A Republican lawmaker from the Buffalo region is criticizing Democratic Erie County…
Fox Hollow Coroner: Serial Killer May Have Had Help - Internewscast Journal

Fox Hollow Coroner: Serial Killer May Have Had Help

Nearly three decades after thousands of human bones and fragments were discovered…
Gavin Newsom-Founded Winery Was Sole Recipient of Pickett Fire Payout - Internewscast Journal

Gavin Newsom-Founded Winery Was Sole Recipient of Pickett Fire Payout

California Gov. Gavin Newsom’s ties to the wine industry are drawing renewed…
Nicki Parker Injured After Colorado Mountain Coaster Ejection - Internewscast Journal

Nicki Parker Injured After Colorado Mountain Coaster Ejection

A 60-year-old Texas woman was left with severe injuries — including a…
Lindsay Clancy Verdict: Judge on Insanity Defense Outcome - Internewscast Journal

Lindsay Clancy Verdict: Judge on Insanity Defense Outcome

If a jury determines that Lindsay Clancy was not criminally responsible when…
Coast Guard Lt. Connor Overstreet Killed in Washington Shooting; Manhunt Underway - Internewscast Journal

Coast Guard Lt. Connor Overstreet Killed in Washington Shooting; Manhunt Underway

A U.S. Coast Guard officer was shot and killed in Washington state…