John Alite, a council member in Englishtown, New Jersey, has been arrested on charges including extortion and terroristic threats. The state’s attorney general announced these developments on Friday.
Alite, previously associated with the Gambino crime family, transitioned to political life and was sworn in as a council member in March 2025. However, his past continues to shadow his present.
He faces multiple charges, including theft by extortion, corporate misconduct, and usury. Usury refers to lending money at illegal interest rates. Alite, 63, was jailed earlier for murder during his association with John A. Gotti but was released in 2012. Now, these recent accusations challenge his rehabilitated image.
Stephen Locrotondo, 67, teamed with Alite in running a loan scheme. They allegedly lent money at rates exceeding 50 percent annually. Victims were forced to repay through threats and violence. Prosecutors say Alite’s company, Straightened-Out Entertainment, facilitated this operation and generated at least $75,000.
New Jersey Attorney General Jennifer Davenport emphasized her office’s commitment to lawful business practices. She pointed to the unfair and unlawful conduct alleged in the case.
Through these schemes, Alite acquired residential property from at least one victim according to court documents. These charges stem from accounts given by two victims, who endured threats of violence from Alite.
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