UMVA has learned that a shocking case of corruption has unfolded in New Jersey, involving a councilman with a notorious past. Councilman John Alite, 63, of Englishtown, was arrested on Friday on charges of loansharking and extortion, allegedly running an illegal loansharking ring while in office.
The charges against Alite include multiple counts of theft by extortion, corporate misconduct, usury, and terroristic threats. A second suspect, Stephen Locrotondo, 67, was also arrested on usury and conspiracy charges. Officials claim that Alite and Locrotondo worked together to give loans with extreme interest rates, while Alite allegedly used threats of violence to collect payment from victims.
Alite's company, Straightened-Out Entertainment, Inc., is also accused of being used to promote his criminal scheme. The New Jersey Attorney General's office described the arrests as the result of rigorous investigative work and strong cooperation between the Division of Criminal Justice and New Jersey State Police.
The alleged crimes are a stunning fall from grace for Alite, who 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. Alite's past ties to the Gambino crime family and his association with John Gotti Jr. have raised serious questions about his judgment and fitness for public office.
New Jersey Attorney General Jennifer Davenport vowed to hold accountable those who cheat and steal, stating that her office is dedicated to ensuring that all businesses conduct themselves fairly and lawfully. The investigation has left many in the community wondering how such a corrupt scheme could have gone undetected for so long.
As the investigation unfolds, Englishtown Mayor Daniel Francisco has stated that he will not rush to judgment, acknowledging that Alite is entitled to a presumption of innocence. Francisco also emphasized that the allegations do not appear to be related to the operations within the Borough and will be resolved outside of it.
It remains unclear whether Alite will retain his seat on the town council during the investigation. Mayor Francisco has noted that the decision to continue in the position rests solely on Alite, as the Borough and the council have no legal authority over his seat.
