Ex-Gambino associate turned NJ councilman arrested on loansharking charges

A New Jersey assemblyman who is a former associate of the Gambino crime family has been arrested on loan-letting and extortion charges after allegedly running an illegal loan-letting ring while in office.

According to the New Jersey Attorney General’s Office, Assemblyman John Alite, 63, of Englishtown, was arrested Friday and charged with extortion, corporate misconduct, loan sharking and multiple counts of theft by terroristic threats. The second suspect, 67-year-old Stephen Locrotondo, was arrested on charges of usury and conspiracy.

Alite and Locrotondo allegedly worked together to provide loans at excessive interest rates, while Alite allegedly threatened “violent acts” to get payment from victims, authorities said. Alite is also accused of using his company, Straightened-Out Entertainment, Inc., to “support the criminal scheme.”

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“These arrests are the result of rigorous investigative work and strong collaboration between the New Jersey State Police and the Division of Criminal Justice, who work tirelessly every day in the pursuit of justice,” New Jersey Attorney General Jennifer Davenport said in a statement. he said.. “Our office is committed to ensuring that all businesses act fairly and lawfully. The conduct alleged in this case is beyond that, and we will work to hold accountable those who cheat and steal.”

Alite was arrested on June 19, 2026, on charges such as extortion and conspiracy. (Albert L. Ortega/Getty Images)

Alite was appointed to fill a vacant seat on the Englishtown city council in 2025, nearly 15 years after he was sentenced to 10 years in prison on racketeering charges. He was previously affiliated with the Gambino crime family and was a former confidant of John Gotti Jr.

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Englishtown Mayor Daniel Francisco said in a statement to Fox News Digital, “Every American, including John, has the right to due process. I will not make a hasty decision until the facts are known, and he has the right to a presumption of innocence while the judicial process continues.” he said. “Based on currently available information, these allegations are not related to operations within our District and will in fact be resolved outside of our District. In the meantime, our District continues to focus on serving our residents, advancing the development of our downtown, and holding two major community events this summer.”

Englishtown Councilman John Alite speaks to a resident at Englishtown City Hall on March 21, 2025 in Englishtown, NJ. (Olivia Liu/Asbury Park Press / USA TODAY NETWORK via Imagn Images)

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It is not known whether Alite will remain in his seat during the investigation. “John is an elected official who was elected by voters last year. The decision to continue in office is his alone. The county and city have no legal authority over his seat,” Mayor Francisco said.

Fox News Digital has reached out to Alite’s attorney, Thomas R. Calcagni, for comment.