TRENTON, NJ — An Englishtown councilman and a Bridgewater man were arrested Friday after New Jersey authorities said an organized crime investigation uncovered alleged extortion and illegal lending activity.
Prosecutors say the case centers on loans made at interest rates above the legal limit, followed by efforts to collect money and property through threats of violence.
What charges did investigators file against John Alite?
Authorities said John Alite, 63, an Englishtown councilman, faces multiple counts including theft by extortion, corporate misconduct, usury and terroristic threats.
Investigators allege he used his company, Straightened-Out Entertainment Inc., as part of the scheme and pressured victims after the loans were made.
What is Stephen Locrotondo accused of?
Stephen Locrotondo, 67, of Bridgewater, was charged with usury and conspiracy, according to prosecutors.
Officials say he agreed to receive interest on loans that exceeded the maximum rate allowed under New Jersey law and coordinated that activity with Alite.
What are prosecutors saying about the investigation?
Attorney General Jennifer Davenport said the arrests followed careful work by the Division of Criminal Justice and New Jersey State Police.
She said the office intends to hold accountable anyone who, in her words, cheats and steals, and described the alleged conduct as unfair and unlawful business activity.
How are local officials responding in Englishtown?
Englishtown Mayor Daniel Francisco said residents should remember that everyone is entitled to due process and that judgment should wait until the court process plays out.
Francisco said the allegations, based on information now available, are not related to borough operations, and said municipal work will continue to focus on services, downtown development and summer events.
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