State prosecutors say John E. Alite and two others used illegal loans, threats and money laundering in an alleged criminal scheme
TRENTON, NJ – A former Englishtown councilman, his son and a third man have been indicted on loansharking, extortion, conspiracy and other charges, New Jersey Attorney General Jennifer Davenport announced Friday.
John E. Alite, 64, of Englishtown, was charged with multiple counts of second-degree theft by extortion, second-degree corporate misconduct, second-degree usury, second-degree money laundering, third-degree terroristic threats and third-degree conspiracy.
According to the New Jersey Office of the Attorney General, Alite allegedly made loans carrying interest rates above the legal maximum and later obtained money and property from victims by threatening violence.
Prosecutors also allege Alite used Straightened-Out Entertainment Inc. and Alite Consulting LLC to further the scheme.
Former Councilman Removed From Office After Arrest
Alite was serving as an Englishtown councilman when he was arrested on June 19, according to the Attorney General’s Office. He has since been removed from the position.
“These defendants allegedly used intimidation and threats of violence to prey on their victims and take what was not rightfully theirs,” Attorney General Jennifer Davenport said. “These crimes have no place in our communities, and we will pursue anyone who tries to profit through fear.”
Also indicted was Stephen Locrotondo, 68, of Bridgewater, who faces charges including usury, extortion, conspiracy, corporate misconduct and money laundering.
Prosecutors allege Locrotondo agreed with Alite to collect interest on loans at rates exceeding the maximum permitted by law.
Alite’s Son Also Indicted
John P. Alite, 35, of Manalapan, was also indicted on charges of usury, conspiracy and money laundering.
“The grand jury’s indictment allows us to move forward with prosecuting these defendants for allegedly using intimidation and violence to exploit vulnerable people,” Division of Criminal Justice Interim Director Martha Nye said.
New Jersey State Police Superintendent Jeanne Hengemuhle called the allegations particularly serious because they involved someone who had held elected office.
“It is particularly disturbing when allegations of this nature involve an elected official, someone the public entrusts to serve with integrity and uphold the law,” Hengemuhle said.
Deputy Attorney General Heather Hausleben of the Division of Criminal Justice is prosecuting the case. The investigation is being handled by the New Jersey State Police Official Corruption North Unit.
All three defendants are presumed innocent unless and until proven guilty in court.
The indictment moves the case against the former Englishtown councilman, his son and a third defendant into the next stage of prosecution, with state authorities alleging a scheme involving illegal lending, threats and financial crimes.