Englishtown Councilman Faces Extortion Charges in Alleged Illegal Lending Scheme

A New Jersey town councilman with a documented history as an enforcer for the Gambino crime family now faces serious criminal charges after allegedly operating an illegal loan sharking ring while holding public office.

John Alite, 63, of Englishtown, was arrested Friday on multiple counts of theft by extortion, corporate misconduct, usury, and terroristic threats, according to the New Jersey Attorney General’s office. The charges represent a troubling convergence of organized crime tactics and elected office, raising questions about how someone with Alite’s background came to hold a position of public trust.

Authorities also arrested Stephen Locrotondo, 67, on usury and conspiracy charges in connection with the alleged scheme. Investigators say the two men worked in concert to provide loans carrying extreme interest rates to victims, with Alite allegedly threatening violence to ensure repayment.

The investigation revealed that Alite used his company, Straightened-Out Entertainment, Inc., as a vehicle to promote and facilitate the criminal enterprise. The choice of company name carries a certain irony, given the allegations now leveled against its owner.

Alite’s past as a top enforcer for the Gotti crime family is well documented in law enforcement records. His transition from organized crime to local politics now appears to have been less complete than residents of Englishtown might have hoped when they elected him to serve their community.

New Jersey Attorney General Jennifer Davenport emphasized the collaborative nature of the investigation in a statement released following the arrests. The case involved coordination between the Division of Criminal Justice and the New Jersey State Police, demonstrating the kind of interagency cooperation necessary to pursue complex criminal enterprises.

“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. “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.”

The charges paint a picture of predatory lending practices backed by threats of violence, a combination that allegedly allowed Alite and his associate to extract payments from victims who found themselves trapped in arrangements with punishing interest rates and the specter of physical harm hanging over their failure to pay.

The case serves as a reminder that the tentacles of organized crime can reach into unexpected places, including the halls of local government. As this prosecution moves forward, residents of Englishtown and citizens throughout New Jersey will be watching to see whether justice is served and whether adequate safeguards exist to prevent individuals with such backgrounds from holding positions of public responsibility.

The investigation continues, and both men will face the criminal justice system to answer for the charges brought against them.