ENGLISHTOWN, NJ — A former mob enforcer and ex-local councilman is among three men who were recently indicted in a loan scheme, Attorney General Jennifer Davenport said.
John E. Alite, 64, of Englishtown, has been 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.
He is accused of making loans in excess of the maximum rate permitted by law and subsequently obtaining the property and monies of victims by threatening to commit violent acts, Davenport said.
Alite is also accused of having misused his businesses, Straightened-Out Entertainment Inc. and Alite Consulting LLC, to promote his criminal scheme.
At the time of his arrest on June 19, Alite was a councilman in Englishtown; he has since been removed from that position, Davenport said.
Alongside Alite, Stephen Locrotondo, 68, of Bridgewater, was indicted and charged with usury, extortion, conspiracy, corporate misconduct, and money laundering for allegedly agreeing with Alite to receive interest on loans more than the maximum rate permitted by law.
Alite's son, John P. Alite, 35, of Manalapan, was charged with usury, conspiracy, and money laundering, authorities said.
"These defendants allegedly used intimidation and threats of violence to prey on their victims and take what was not rightfully theirs," Davenport said. "These crimes have no place in our communities, and we will pursue anyone who tries to profit through fear."
Appointed to the Borough Council in 2025, Alite was previously known as a member of the Gambino crime family and John Gotti Jr.'s best friend, according to a report from NJ.com.
Following his arrest in June, he was ordered to be detained pending trial by Judge Imre Karaszegi Jr., who cited "escalating dangerous behavior" among the allegations in the charges that Alite faces.
In a statement previously sent to Patch, one of Alite's attorneys, Douglas Anton, said that while the defense was disappointed in the court's ruling to deny Alite release, it's only "the first step in a lengthy legal process."
"Our team is already regrouping to secure our client's release," Anton said in the statement. "Once the State fulfills its obligation to turn over complete discovery, we will advance our independent investigation."
"We are confident this process will uncover critical exculpatory evidence establishing John's innocence and ultimately lead to a favorable resolution of this matter."
Patch has reached out to Alite's attorneys for comment on the indictment. This article will be updated if a response is received.
Deputy Attorney General Heather Hausleben of the Division of Criminal Justice is prosecuting the case.
The case is being investigated by the NJ State Police Official Corruption North Unit.
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