Former Englishtown councilman John Alite, son indicted in alleged loansharking scheme
Alite was arrested in June while serving on the Englishtown Borough Council. His son and a third man also face charges in the alleged scheme.
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A former Englishtown councilman, his son and a third man have been indicted on charges stemming from an alleged loansharking and extortion scheme, New Jersey authorities announced Friday.
John E. Alite, 64, of Englishtown, faces multiple counts of theft by extortion, corporate misconduct, usury and money laundering, along with charges of terroristic threats and conspiracy, according to the state Attorney General's Office.
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Prosecutors allege Alite made loans with interest rates exceeding legal limits and threatened to commit violent acts to obtain money and property. He is also accused of using two businesses, Straightened-Out Entertainment Inc. and Alite Consulting LLC, to further the alleged scheme.
Alite was serving on the Englishtown Borough Council when he was arrested June 19. The Attorney General's Office said he has since been removed from office.
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News 12 previously reported that Alite was a member of the Gambino crime family, served 14 years in prison and later testified against members of the Gotti family.
Also indicted were his son, John P. Alite, 35, of Manalapan, and Stephen Locrotondo, 68, of Bridgewater.
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The younger Alite faces charges of usury, conspiracy and money laundering. Locrotondo faces charges of usury, extortion, conspiracy, corporate misconduct and money laundering.
News 12 has requested comment from Alite's attorneys.
