Sunday, August 21, 2011

Welcome

At one time Alameda County was perceived as a bright star and a rock of upstanding politicians in a sea of corrupt counties and local governments within California. Much of this changed back in the 80’s around the time of Pete Stark, Bill Lockyer, Don Perata, Bob Knox, Elihu Harris and many more. To this day Alameda County is yet to fully recover from that period.

The list of supporting players is long and twisted. There are the ex-wives, girl friends, mistresses, illicit drug enablers, back room campaign financiers, pay-to-play business associates, and unsuspecting volunteers.

Sadly, there were also a number of well meaning, honest, hard working people whom sought to help make a difference, but found the politicians of that period a disgraceful wake-up call to the changes rapidly occurring within Alameda County. Many of those people have enlightened me over the years.

The Back Story will chronicle some of what I personally experienced, as well provided to me by other insiders. Some of my sources remain active in Alameda County and California level politics, both as political insiders and individuals doing business with local and State level government entities. (I would enjoy any additional information or post from people familiar with Alameda County politics, in particular with the politicians and time frame covered)

My chronicles start with Bob Knox’s (Robert G. Knox III) initial campaign for Alameda County Treasurer. I was an uncompromising individual with goals for higher education and doing great things to help others. In an odd meeting with mutual friends, I found myself volunteering to help Bob Knox’s election campaign. I continued to help and work for him on-and-off for over a decade thereafter.

Almost from the start, I saw things that were improper: fund raising events where cash and checks from investment bankers and business associates of Bob Knox’s were slipped to him or his campaign manager in back rooms, which for some reason did not get reported on required financial disclosures. A source once asked why those funds did not make it to the reports. Bob’s reply was a warning never to ask or discuss the matter “if you want my help in the future.” I witnessed the consumption of illegal and illicit drugs at Bob Knox’s home in the Oakland Hills during “thank you parties” and gathering of campaign staff. The drugs were provided by campaign staff and consumed by many. A source indicated the drugs were supplied by Bob Knox’s mistress at that time. The mistress was also providing campaign assistance, but it is unclear if she was paid for her role.

Sometime during Bob Knox’s Treasurer’s campaign, Bill Lockyer, current California State Treasurer, and Bob Knox formed their political and personal relationship. That relationship continues today, and is as robust as ever. The foundation of this relationship from the onset was the exchange of political favors and business benefits in exchange for access to fund-raising assistance and resources from Lockyer’s long list of supporters. This exchange of favors has continued uninterrupted and has mutually benefited both parties. As of just over a year ago, Bob Knox provided Bill Lockyer a substantial political favor by financially supporting Bill Lockyer’s new wife Nadia, in her successful campaign for Alameda County Supervisor. This is a position Bob Knox held for many years. Bob’s support for Nadia went well beyond financial, as Bob called in many of his long-time political and business associates to contribute and volunteer end-less hours on Nadia’s campaign. Bob was also front and center on a campaign mailer for Nadia that referenced his former position as County Treasurer. Bob’s daughter, Kati Knox, who owns a business in San Leandro, and has been politically active in San Leandro for many years and romantically connected to numerous San Leandro businessmen and an active San Leandro Police Officer, worked relentlessly on Nadia’s campaign.

Bob Knox recently formed an investment banking firm, R.G. Knox Company LLC, (www.rgknox.com) based out of his home in Park City Utah and is currently one of only a few small firms (below normally accepted capital levels) to be accepted by Bill Lockyer’s office to the “Public Finance Underwriter Pool for 2011-2013”. Acceptance as an underwriter provides these firms access to potential fees (substantial in many cases) for managing funds for the State of California and the Treasurer’s office.

Bob Knox’s new investment banking firm surfaced after he shutdown his California based investment-banking firm and resigned as a VP at Zion’s Bank in Salt Lake City. I have some unconfirmed details regarding the reasons behind these recent events. I will share them once they can be confirmed.

(The Back Story will continue to grow in the weeks and months to come)