Nah, it's definitely somewhere in New Jersey. On LCS, someone calls in from Carcer, and they sound like they have that accent that's relative of the NYC/ northeastern NJ area. Plus, I could of sworn I heard something in that call about the two cities (Carcer and Liberty) being basically right next to each other.
Plus, when you look at it:
Carcer = Jail
Liberty = Freedom
So it can only mean the two cities are indeed neighbors.