Former Gambino member and New Jersey councilman arrested for loan sharking.

Arrest of Former Gambino Member in New Jersey

A New Jersey state legislator, who previously affiliated with the Gambino crime family, has been arrested on charges of loan sharking and racketeering. John Allite, 63, a member of the Englishtown City Council, allegedly ran an illegal loan sharking operation while holding office.

Allite was taken into custody on Friday and faces multiple charges, including racketeering, corporate fraud, and usury, as reported by the New Jersey Attorney General’s Office. Another suspect, Stephen Locrotondo, 67, was also arrested for similar offenses, including conspiracy.

According to officials, both men are accused of issuing loans at exorbitant interest rates. Allite reportedly threatened victims with “violent acts” to recoup debts. He is further alleged to have utilized his business, Straightened-Out Entertainment, Inc., in furtherance of illegal activities.

New Jersey Attorney General Jennifer Davenport commented on the arrests, stating, “These arrests result from diligent investigative work and the collaboration between the Division of Criminal Justice and the New Jersey State Police.” She emphasized the commitment to ensuring lawful conduct among businesses and indicated that fraudulent activities would be addressed rigorously.

Allite, who joined the Englishtown City Council in 2025, had a prior conviction stemming from a 10-year prison sentence for extortion about 15 years ago. He once had connections to the Gambino crime family and was reportedly a close associate of John Gotti Jr.

Englishtown Mayor Daniel Francisco defended Allite’s right to due process, expressing caution before making any judgments, particularly while the matter is still unfolding. He noted that the allegations seem unrelated to activities within their district, assuring residents that the council’s focus remains on community service and upcoming events.

The future of Allite’s position on the council during the investigation is uncertain. Mayor Francisco pointed out that since Allite was elected by voters, the decision on his continued service rests solely with him, as the borough lacks legal authority in this regard.