Englishtown Councilman John Alite, a former Gambino crime family associate who later became a government witness, is accused of operating an extortion and illegal lending scheme, according to New Jersey authorities.
The experiment that could only happen in New Jersey has failed. A former Gambino family hitman who pledged reform and spoke to others about his alleged murders and life of crime is back in jail after being elected to public office.
A sitting Englishtown borough councilman with a well-known organized crime past has been arrested on multiple felony charges, including extortion, terroristic threats, usury, and corporate misconduct, New Jersey Attorney General Jennifer Davenport announced Friday.
John Alite, 63, of Englishtown, was taken into custody on June 19 following an investigation by the New Jersey State Police Official Corruption North Unit and the Division of Criminal Justice.
Prosecutors allege threats and illegal loans
According to authorities, Alite is charged with multiple counts of second-degree theft by extortion, second-degree corporate misconduct, second-degree usury, and terroristic threats.
Investigators allege Alite issued loans with interest rates exceeding legal limits and then used threats of violence to obtain money and property from victims.
“It is alleged that Alite made loans in excess of the maximum rate permitted by law and subsequently obtained the property and monies of victims by threatening to commit violent acts,” the Attorney General’s Office said in a statement.
Prosecutors also allege Alite used his company, Straightened-Out Entertainment, Inc., to further the criminal enterprise.
Second defendant also charged
Authorities also arrested Stephen Locrotondo, 67, of Bridgewater, on charges of usury and conspiracy.
Investigators allege Locrotondo agreed to receive unlawful interest payments on loans in coordination with Alite.
The charges stem from an organized crime investigation conducted by state authorities. Additional details about the alleged scheme were not immediately released.
Former mob associate served prison sentence
Alite is widely known for his past association with the Gambino crime family. He later cooperated with federal prosecutors and testified against organized crime figures, including John A. “Junior” Gotti.
Following his release from prison, Alite became a motivational speaker, author, and podcast host. He was appointed to the Englishtown Borough Council in 2025.
Attorney General Davenport praised investigators for their work on the case.
“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.
State officials call allegations serious
Division of Criminal Justice Director Theresa L. Hilton said prosecutors will continue pursuing the case on behalf of victims.
“Our commitment to holding offenders accountable and delivering justice for victims does not end with an arrest,” Hilton said. “We remain steadfast in our mission to secure justice for every victim to ensure their voices are heard.”
Acting New Jersey State Police Superintendent Jeanne Hengemuhle described the allegations as involving intimidation and unlawful financial practices.
“Individuals who seek to enrich themselves through intimidation, exploitation, or abuse of power should expect to be held accountable for their actions,” Hengemuhle said.
Deputy Attorney General Heather Hausleben is prosecuting the case.
Key Points
• Englishtown Councilman John Alite was arrested on charges including theft by extortion, usury, terroristic threats, and corporate misconduct.
• Authorities allege Alite made illegal high-interest loans and used threats of violence to collect money and property from victims.
• Bridgewater resident Stephen Locrotondo was also arrested and charged with usury and conspiracy.
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