TRENTON (CNBNews)(June 24, 2026) — Attorney General Jennifer Davenport announced that two men were arrested for various crimes including terroristic threats, extortion, usury, and conspiracy.

John Alite, 63, of Englishtown, New Jersey, was arrested on June 19, 2026, and charged with multiple counts of theft by extortion (second degree), corporate misconduct (second degree), usury (second degree), and terroristic threats. It is alleged that Alite made loans in excess of the maximum rate permitted by law and subsequently obtained the property and monies of victims by threatening to commit violent acts. He is also alleged to have misused his corporation, Straightened-Out Entertainment, Inc., to promote his criminal scheme. Alite is a councilman in Englishtown.

JOHN ALITE/FACEBOOK

Stephen Locrotondo, 67, of Bridgewater, New Jersey, was also arrested today and charged with usury and conspiracy, for allegedly 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,” said Attorney General Davenport. “Our office is dedicated to ensuring that all businesses conduct themselves fairly and lawfully. The conduct alleged in this case was anything but, and we will work to hold those who cheat and steal accountable.”

“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.”

“The charges in this case, which include theft by extortion, terroristic threats, usury, conspiracy, and corporate misconduct, represent serious allegations involving the use of intimidation, coercion, and unlawful financial practices for personal gain. These offenses strike at the fundamental principles of fairness, accountability, and public trust,” said Jeanne Hengemuhle, Acting Superintendent of the New Jersey State Police. 

“Today’s arrests reflect the diligent work of detectives committed to uncovering complex criminal activity and pursuing justice on behalf of those impacted. Individuals who seek to enrich themselves through intimidation, exploitation, or abuse of power should expect to be held accountable for their actions.”

Deputy Attorney General Heather Hausleben of the Division of Criminal Justice is prosecuting the case. The case is being investigated by the New Jersey State Police Official Corruption North Unit.

All individuals are presumed innocent until proven guilty.

 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.”