John Alite, known for his past association with the Gambino crime family, was recently arrested in New Jersey. The state’s attorney general announced the charges, which include extortion and making terroristic threats.
Alite, who previously spent time in prison for murder as a hitman for John A. Gotti, had taken steps to reform his image after his release in 2012. In March 2025, he was sworn in as a council member in Englishtown, N.J., located about 40 miles south of Newark.
The charges brought against Alite, now 63, include multiple counts of theft by extortion and corporate misconduct. According to court documents, Alite, along with Stephen Locrotondo who is 67, is accused of running a loan scheme with alleged interest rates exceeding 50 percent annually. They reportedly pressured victims into payments through threats of violence.
Prosecutors believe Alite used his venture, Straightened-Out Entertainment, as a front for the scheme. The company reportedly generated at least $75,000 through this illegal activity. Despite attempts to reach them, Alite’s lawyer did not respond for comments.
Jennifer Davenport, New Jersey’s attorney general, emphasized in a statement the importance of fair and lawful business conduct. She stated, “The conduct alleged in this case was anything but, and we will work to hold those who cheat and steal accountable.”
Court records reveal that Alite’s scheme included acquiring residential properties from victims through threats and intimidation. The allegations are based on testimonies from two victims who described a sense of terror created by Alite’s actions.