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“Frank Pallotta has fiercely denied claims that he was involved in subprime mortgages while working as an investment banker, but two of his colleagues testified under oath that he was responsible for some high-risk home loans that contributed to the mortgage crisis leading to an economic recession.”

7/31/2020: The New Jersey Globe

Subprime Mortgages
Loans where the person receiving the loan does not have the resources necessary to pay back what they owe. One of the single biggest reasons the economy collapsed in 2008.

2003
#FraudsterFrank Pallotta arrives at Morgan Stanley, where he quickly makes a name for himself in subprime mortgages.

2005
#FraudsterFrank is put in charge of upholding standards at Morgan Stanley. His efforts result in a $2.6 billion fine from the federal government.

No Money? No Problem!
How hard should it be to get a loan? For #FraudsterFrank, the answer was that it should be as as tough as going through a “torn porch screen.”
The Great Recession:
Homes: Gone
Life savings: Gone
College Funds: Gone

2008:
The subprime mortgages #FraudsterFrank spent more than a decade pushing collapse, leading to the crash of the global economy. New Jerseyans lost their homes, their life savings, even their kids’ college funds. Seniors, veterans, and first responders end up living on the street.

2008
#FraudsterFrank leaves Morgan Stanley and creates a new company that makes money off those struggling to pay their mortgages.

Fun Fact:
#FraudsterFrank’s partner in this company singlehandedly lost Morgan Stanley $9 billion. Between he and #FraudsterFrank, that’s $11.6 billion down the drain.
Countrywide Financial steered more than 200,000 black and Hispanic borrowers into subprime mortgages — for no reason other than the color of their skin.  

2015 
One of #FraudsterFrank’s biggest clients is fined more than $350 million by the government for targeting minorities.

2019
Tired of getting rich off of ripping off North Jersey families, #FraudsterFrank begins his run for Congress by lying to his potential constituents, saying: “To be clear, in my 25 years on Wall Street, I never spent a single day in subprime mortgages.”  

To be clear:
In 2016, both former Morgan Stanley Vice President Lisa Stanley and former Executive Director Francis Telesca swear under oath that #FraudsterFrank was involved in subprime mortgages.


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PAID FOR BY JOSH GOTTHEIMER FOR CONGRESS, PO BOX 584 RIDGEWOOD, NJ 07451