Ex-Gambino Family Enforcer Turned NJ Councilman Denied Release From Jail

ENGLISHTOWN, NJ — An ex-mob enforcer turned local councilman who was recently charged in a loan scheme will be held in jail pending trial, according to the NJ Office of the Attorney General (NJ OAG).

John Alite, 63, of Englishtown, was arrested on Friday and charged with multiple counts of theft by extortion (second degree), corporate misconduct (second degree), usury (second degree), and terroristic threats.

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, authorities said.

He is also accused of having misused his corporation, Straightened-Out Entertainment, Inc., to promote his criminal scheme.

• Read More: Ex-Gambino Family Enforcer Turned NJ Councilman Charged In Loan Scheme

On Wednesday night, Alite was ordered to be detained pending trial by Judge Imre Karaszegi Jr., the NJ OAG told Patch.

According to a report from NJ.com, Karaszegi cited “escalating dangerous behavior” among the allegations in the charges that Alite faces.

In particular, the judge cited some of the language the state has accused Alite of making to borrowers, the Asbury Park Press reported, including things such as “a baseball bat across the head” and “gutting people like fish.”

Though Alite may have used "ugly" language while trying to collect on unpaid loans, defense attorney Shawn Barnes said he never harmed borrowers, according to the Asbury Park Press.

In a statement sent to Patch, one of Alite’s other attorneys, Douglas Anton, said that while the defense is “naturally disappointed by the court’s ruling,” it’s only “the first step in a lengthy legal process.”

“Our team is already regrouping to secure our client's release,” Anton said. “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."

Alite’s arrest follows his appointment to the Englishtown Borough Council in the spring of 2025.

Before that, he was known as a member of the Gambino crime family and John Gotti Jr.’s best friend.

In an email sent to Patch, Englishtown Mayor Daniel Francisco said that, based on the currently available information, the allegations against Alite are not related to operations within the borough.

When asked if Alite currently retains his position on the Borough Council, Francisco said the decision to continue in his position mainly rests on Alite.

“John is an elected official chosen by the voters last year. The decision to continue in the position rests solely on him," he said. "The borough and the council have no legal authority over his seat.”

Previous Coverage

• Ex-Gambino Family Enforcer Turned NJ Councilman Charged In Loan Scheme

Editor's Note: This article has been updated with information from the NJ OAG.