Former Gambino mob enforcer turned NJ councilman indicted on loansharking, extortion charges

John Alite, who once worked for the notorious organized crime family and later became an Englishtown councilman, is accused of threatening borrowers with violence. His son and another man also face charges.

A former Gambino crime family enforcer who spent 14 years in prison before reinventing himself as a motivational speaker with more than 1 million social media followers and winning a seat on a New Jersey borough council has been indicted on charges of loansharking, extortion, money laundering, and threatening borrowers with violence.

John E. Alite, 64, of Englishtown, once worked for the Gambino crime family, one of New York’s most notorious organized crime organizations, and later became a government witness against John “Junior” Gotti. After leaving prison, he promoted himself as a reformed criminal who wanted to help young people avoid his mistakes.

In 2025, Alite entered politics when he was appointed to the Borough Council in Englishtown, a small Monmouth County community, with the support of Mayor Daniel Francisco. His appointment came amid political turmoil that prompted four of the borough’s six council members to resign, with departing officials accusing the mayor of consolidating power and creating a hostile environment.

Alite subsequently won an uncontested election for a full council term.

Now, state prosecutors are accusing him of operating an illegal lending scheme involving threats of violence against borrowers.

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A state grand jury indicted Alite and two other men, including his 35-year-old son, John P. Alite, of Manalapan, on charges stemming from the alleged operation, according to a statement Friday afternoon by Attorney General Jennifer Davenport.

Prosecutors say the elder Alite made loans at interest rates exceeding the legal limit, then threatened borrowers with violence to collect money and property.

The indictment also charges Stephen Locrotondo, 68, of Bridgewater, with participating in the alleged scheme.

Alite faces multiple counts of second-degree theft by extortion, corporate misconduct, usury, and money laundering, along with third-degree terroristic threats and conspiracy.

Authorities allege that he used two of his businesses, Straightened-Out Entertainment Inc. and Alite Consulting LLC, as part of the operation.

Alite was serving on the Borough Council when state police arrested him on June 19. He has since been removed from office.

Locrotondo faces charges of usury, extortion, conspiracy, corporate misconduct, and money laundering. Prosecutors allege that he worked with Alite to collect unlawful interest on loans.

Alite’s son faces charges of usury, conspiracy, and money laundering. Authorities did not provide additional details about his alleged role in the operation.

“These defendants allegedly used intimidation and threats of violence to prey on their victims and take what was not rightfully theirs,” Davenport said in announcing the indictment. “These crimes have no place in our communities, and we will pursue anyone who tries to profit through fear.”

Jeanne Hengemuhle, superintendent of the New Jersey State Police, said the allegations were particularly troubling because they involved someone elected to public office.

“It is particularly disturbing when allegations of this nature involve an elected official, someone the public entrusts to serve with integrity and uphold the law,” she said.

Threats and high-interest loans

The indictment follows an organized crime investigation that became public in June, when authorities arrested Alite and Locrotondo.

At a June 24 detention hearing, prosecutors described allegations involving two borrowers who received a combined $150,000 in loans carrying a monthly interest rate of 7%, according to News 12 New Jersey.

Prosecutors said Alite threatened the borrowers when they fell behind on payments. During telephone conversations, he allegedly told them he could gut people like fish and warned that the same could happen to them.

Court documents described additional threats, including an allegation that Alite threatened to strike one borrower in the head with a baseball bat.

During a search of Alite’s home, investigators recovered six baseball bats, metal knuckles, an expandable baton, and approximately two dozen knives, according to The Associated Press. Investigators believed the weapons were connected to the alleged debt collection operation.

Superior Court Judge Imre Karaszegi Jr. ordered Alite detained pending trial, finding that releasing him could pose a danger to the public and create a risk of witness intimidation.

Alite’s defense attorney, Sean Barnes, argued at the hearing that his client had not physically harmed anyone in connection with the alleged threats and had stayed out of legal trouble for approximately 15 years.

Barnes acknowledged that Alite made “unpleasant” telephone calls but said he was attempting to collect money owed to him.

A controversial entry into politics

Alite’s criminal past was well known when he entered politics in 2025, but his appointment came during an already contentious period in Englishtown government.

Four of the borough’s six council members resigned in early 2025 amid disputes with Mayor Daniel Francisco.

Francisco had asked council members to resign, citing a legal matter he declined to discuss publicly. Other members resigned in protest.

Former Councilman William Sabin accused Francisco of putting his political ambitions ahead of the borough’s interests. Sabin told reporters he believed the mayor wanted council members who would support his decisions rather than challenge them.

Meaghan Lewis, another departing councilwoman, accused Francisco of creating a hostile political environment and said she feared for her well-being and that of her children. Lewis also alleged that Francisco pressured council members to minimize written communications that could be obtained through New Jersey’s Open Public Records Act.

Francisco declined to discuss the circumstances surrounding the resignations in detail with reporters at the time, citing litigation.

The upheaval created vacancies on the governing body, including the seat Alite eventually filled. Francisco supported Alite’s selection, and the Borough Council voted to appoint him. The mayor defended Alite’s right to a second chance despite his criminal history.

Alite told News 12 that residents cared more about what he had done in recent years than about crimes committed decades earlier. In interviews about his new political career, Alite said he wanted to help revitalize Englishtown’s downtown, encourage business development, and address drug trafficking.

His appointment attracted national attention because of his organized crime background.

Alite subsequently ran without opposition in both the 2025 Republican primary and November general election. Democrats did not field a candidate against him.

From Gambino enforcer to government witness

Long before entering public office, Alite had established a reputation for violence as an associate and enforcer for the Gambino crime family.

He was a close associate of John “Junior” Gotti, the son of former Gambino boss John Gotti, and participated in the organization’s criminal activities, including extortion, drug trafficking, assaults, and killings.

Alite later acknowledged committing multiple murders and participating in numerous shootings during his years in organized crime.

After his arrest, he cooperated with federal prosecutors and testified against the younger Gotti during a 2009 racketeering trial. The trial ended with a deadlocked jury. Alite spent approximately 14 years in prison.

After returning to society, he became an author, podcaster, and motivational speaker, discussing his experiences in organized crime and warning young people about the consequences of criminal activity.

He co-authored “Gotti’s Rules,” a book recounting his experiences in the Gambino organization. His public message emphasized rehabilitation, personal responsibility, and second chances.

In interviews following his appointment to the Englishtown council, Alite described his political career as another opportunity to put his past behind him.

At a June council meeting, Francisco said the borough would follow state law governing prolonged absences by council members. He defended Alite’s right to due process and said the allegations did not appear to involve borough government operations.

“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,” Francisco told News 12.