Englishtown Ex-Councilman Indicted in Loan Scam

John E. Alite, 64, faces multiple felony charges in a scheme involving high-interest loans and threats of violence. The state Attorney General's Office announced the indictment on Friday.

Alite served on the Englishtown Borough Council when police arrested him on June 19. He has since been removed from that position. The indictment lists counts for theft by extortion, corporate misconduct, usury, money laundering, terroristic threats, and conspiracy. Prosecutors allege he used two entities, Straightened-Out Entertainment Inc. and Alite Consulting LLC, to advance the alleged scheme. The office says Alite made loans with interest rates above the legal cap and threatened violent acts to secure money and property.

Two other men were also indicted. John P. Alite, 35, of Manalapan, faces charges of usury, conspiracy, and money laundering. Stephen Locrotondo, 68, of Bridgewater, faces charges of usury, extortion, conspiracy, corporate misconduct, and money laundering.

News 12 previously reported that the elder Alite was a member of the Gambino crime family. He served 14 years in prison and later testified against members of the Gotti family. The Attorney General's Office has requested comment from Alite's attorneys.

The next step in the case is for the defendants to answer the charges in court. The indictment provides the formal basis for the state's prosecution of the three men.