New Jersey Councilman John Alite Arrested on Extortion Charges

John Alite, a member of the borough council in Englishtown, New Jersey since 2025, was arrested on Friday on charges related to extortion and terroristic threats. The state’s attorney general announced these developments.

Alite, who was once associated with the Gambino crime family, has faced various charges including multiple counts of theft by extortion, corporate misconduct, making terroristic threats, and usury. Usury refers to the act of lending money at illegal interest rates.

Previously, Alite, 63, served time in jail for his involvement in the killings of at least two people during his association with John A. Gotti. However, following his release in 2012, he sought to change his life and was sworn in as a council member for Englishtown in March 2025. Englishtown is situated approximately 40 miles south of Newark.

Alite, along with Stephen Locrotondo, 67, allegedly provided loans with exorbitant interest rates, sometimes exceeding 50 percent annually. They are accused of pressuring victims into handing over money and property through threats of violence, as per court documents. Prosecutors allege that Alite utilized his company, Straightened-Out Entertainment, to further the scheme and accrued at least $75,000.

Alite’s legal representative did not respond immediately to requests for comments on Saturday.

Jennifer Davenport, New Jersey’s attorney general, voiced the commitment of her office to ensure fair and lawful business practices. She stated, “The conduct alleged in this case was anything but, and we will work to hold those who cheat and steal accountable.”

Documents from the court revealed that Alite managed to acquire a residential property from at least one individual through his extortion activities. The charges relied on accounts from two victims who reported Alite’s threats of violence with disregard for the terror they might cause.