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

A former associate of the Gambino crime family-turned New Jersey councilman was arrested on loansharking and extortion charges after allegedly running an illegal loansharking ring while in office.

Councilman John Alite, 63, of Englishtown, was arrested on Friday and charged with multiple counts of theft by extortion, corporate misconduct, usury and terroristic threats, according to the New Jersey Attorney General's office. A second suspect, Stephen Locrotondo, 67, was arrested on usury and conspiracy charges.

Officials say that Alite and Locrotondo worked together to give loans with extreme interest rates, while Alite would allegedly threaten "to commit violent acts" in order to collect payment from victims. Alite is also accused of using his company, Straightened-Out Entertainment, Inc., to "promote his criminal scheme."

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"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," New Jersey Attorney General Jennifer 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."

Alite was appointed to fill a vacant seat on Englishtown's town council in 2025, nearly 15 years after he was sentenced to 10 years in prison on racketeering charges. He was previously linked to the Gambino crime family and the ex-confidant of John Gotti Jr.

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"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," Englishtown Mayor Daniel Francisco told Fox News Digital 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."

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."

Fox News Digital reached out to Alite's lawyer, Thomas R. Calcagni, for comment.