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

ENGLISHTOWN, NJ — An ex-mob enforcer turned local councilman has been arrested and charged in an organized crime investigation, Attorney General Jennifer Davenport said.

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, Davenport said.

Alite 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.

Alongside Alite, Stephen Locrotondo, 67, of Bridgewater, was also arrested and charged with usury and conspiracy and accused of agreeing to receive interest on loans in excess of the maximum rate permitted by law in coordination with Alite.

“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.

“Our office is dedicated to ensuring that all businesses conduct themselves fairly and lawfully,” she continued. “The conduct alleged in this case was anything but, and we will work to hold those who cheat and steal accountable.”

Now known as a councilman in Englishtown, 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.

He was appointed to the Borough Council in the spring of 2025 after four members suddenly resigned, NJ.com reported.

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

“Every American is entitled to due process, including John," Francisco said. "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."

"There are often opportunists ready to pounce on calamity; I implore those following along to remain human — there are always innocent bystanders on all sides, like family, impacted by the urge for commotion," he continued.

"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, Francisco said the borough remains focused on "serving our residents, advancing downtown development, and delivering two great community events this summer.”

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.”

Patch has reached out to Alite's legal representation for comment on the charges. 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.

“Our commitment to holding offenders accountable and delivering justice for victims does not end with an arrest,” said DCJ Director Theresa L. Hilton. “We remain steadfast in our mission to secure justice for every victim to ensure their voices are heard.”