Kathleen Knox - Pleads No Contest to Fraud Charges

A former candidate for Alameda County auditor-controller was convicted yesterday for violations of California's election code.

Kathleen Knox was originally charged with seven counts of perjury and voter fraud. Ms. Knox pleaded no contest to three counts and was sentenced to three years probation and fined. Ms. Knox's counsel did not return our calls seeking comment on the case.

Ms. Knox was also investigated by the FPPC (Fair Political Practices Commission) and found guilty of violations of the Political Reform Act.

Kathleen Knox is the daughter of former Alameda County Supervisor Bob Knox.

Bob Knox is also in legal trouble, as the State of California is seeking to collect millions for environmental damage associated with a Contra Costa based company which Mr. Knox owns and operates. Public records show CPC Holdings is the company in question, which is currently based in Utah. Bob Knox resides in Utah with his wife Karla Jo Knox and two school age children.

Alameda County, Voters must learn from their mistakes!

BREAKING NEWS, it has been reported by Matier & Ross that law enforcement sources report the Lockyer's eight year old son was with his mother (Nadia) at the Newark motel at the time of her alleged assault. In an earlier statement, Bill Lockyer stated his wife went to a motel late in the evening to help an ex-boyfriend who was a low level drug dealer with a criminal record during a difficult period. This new information raises serious questions which would seem to merit an investigation by Child Protective Services. It has also been reported the Alameda County DA has turned the entire matter over to the State Attorney Generals Office due to conflicts. It would also appear The State Attorney Generals Office might also have a few conflicts to deal with. We would not be surprised to see this matter turned over to the FBI for further investigation to avoid any question of political favoritism or meddling.

In August of 2011 when our first installment was written, we would never have predicted that in less then 6 months many former Alameda County politicians mentioned in our “Welcome” installment would find themselves again in the spot light. Furthermore, a number of current Alameda County politicians followed with shocking front-page headlines of their own.

It did not come as a complete surprise that Bill Lockyer, the most senior political power player from Alameda County had political connections with a few of the unflattering disclosures, the most shocking being his wife Nadia’s scandalous activities. Let us not forget Elihu Harris and the Peralta School District and questions of corruption. Don Perata interestingly kept a rather low profile after losing the Oakland Mayors race, though the long-term FBI investigation into his business dealings has taken its toll on the likelihood of any future political office. Bob Knox, who seemingly has taken refuge far from Alameda County, though continuing his close ties to Bill Lockyer, is himself in serious hot water, as the State of California’s Environmental watchdog is seeking to collect millions from him and his company(ies) for environmental damage and a resulting clean up. And of course Mary Hayashi and her shop lifting while texting and being treated for a brain tumor.

Is it any wonder when you analysis the history of some former Alameda County politicians, that current Alameda County politicians have taken to blatant criminal activity, drug abuse, lack of basic common sense and a general disregard for moral and ethical boundaries that most citizens of Alameda County understand and abide by.

Who is to blame, undoubtedly, the politicians are directly to blame for their transgressions, however, these troubled individuals would never be elected public servants if it were not for voters who elected them. The taxpayers of Alameda County have obviously been slow to learn from prior mistakes. If you were to look back and seek a potential reason why voters are slow to learn, it would be that voters wrongly associate the best candidate for the job with the amount of money the candidate spends “buying” their faith and trust.

Ironically, in California as a whole, this trend of candidates spending ridiculous amounts of money to buy voter faith, trust and their respective vote is showing signs of a revolt. The battle for Governor is a prime example. Meg Whitman by a large margin out spent Jerry Brown, though voters solidly elected Jerry Brown on his simple and much less expensive platform of solid reputation and track record.

Regrettably, the voters of Alameda County do not yet appear to be following the lead of California voters as a whole. The data that is available indicates that Nadia Lockyer’s campaign spent more per vote then Meg Whitman spent in her failed run for governor. Furthermore, over 90 percent of Nadia’s campaign funds came from OUTSIDE the district she was seeking election. The largest single funding source for Nadia’s campaign came from her husband Bill’s campaign war chest…nearly $2 million dollars. Apparently, Nadia’s campaign spent more money per vote then any campaign in California history. This was foreshadowed by Bill Lockyer’s promise during Nadia’s campaign to do whatever it took to get his wife elected. We would guess Bill might be having second thoughts right about now?

What can the people of Alameda County, especially those in District 2, learn from the unfolding scandal that surrounds Bill and Nadia Lockyer? Perhaps that local grass root candidates with a proven track record of leadership along with moral and ethical standards are more inclined to be the best person for the job, then a candidate whom mails dozens of glossy campaign packages that through mud at others, imply you are a Deputy District Attorney when you are not, and mention endorsements that are false.

We would suspect that voters and grass root candidates from District 2 are at this moment brainstorming on possible recall efforts of Ms. Lockyer. There is no question there is solid justification for such efforts.

More Alameda County Spin….

The question is how low past or present Alameda County Politicians will go to avoid responsibility for their actions? The answer; there is no limit!

As is the case with a majority of scandalous disclosures associated with past or present politicians, there is the spin and blame game, deflection, denial, transference, projection….and as of recently….the brain tumor defense. Well, many thought Ms. Hayashi’s transference of responsibility was sick (pun intended)…not so quick! Bob Knox and his daughter (Kathleen Knox) appear to be taking the bar another step lower.

It has come to The Back Story’s attention via a respected Alameda County Political Blogger that Mr. Knox and his daughter are attempting to spin and blame their personal back-story, as written about here, on another family member.

As we researched what appears to be another far reaching attempt at transference in Alameda County, we could find no evidence the family member Mr. Knox or Ms. Knox were attempting to blame had a single role in any of the companies owned by either Bob Knox or Kathleen Knox that were mentioned in earlier installments.

The family member in question did not want to be identified or comment publicly due to concerns of retaliation and harassment. After review of an email written by Bob Knox to this particular family member, the concerns of retaliation were clearly merited.

In addition, this family member was also the subject of an anonymous death threat and harassing emails, which are very disturbing in their content. The timing and content of these anonymous communications does not appear to be coincidental.

It should also be noted that as reported earlier in The Back Story, Nadia Lockyer’s Chief of Staff seemed strangely focused on those whom were involved with The Back Story, and not on answering questions relating to Nadia’s and Bill Lockyer’s connection to Bob Knox. This would appear to further support the concerns of retaliation.

We would enjoy hearing Bob Knox’s and/or Kathleen Knox’s explanation. The Blog is open to public comment, and has been from day one.

As we dug deeper and looked back at Bill Lockyer’s history, if there is one thing Mr. Lockyer has a reputation for, is his ability to encourage his cronies to take on the pit bull role of the political battlegrounds.

We do wonder if Bill Lockyer is fully aware of what his cronies, (pit bulls) might be doing….on the other hand; he probably does not want to know….planned deniability is a valuable political asset.

Blowback in Alameda County?

As we continue to research, investigate and report on past and current Alameda County politicians in our efforts to shed light on the Back Story’s, we were not anticipating much in the way of blowback. Though what we have reported on so far is almost entirely from public records and sources, it appears those who have to date been mentioned in the Back Story may want to silence us, or at least control what we research or disclose.

A source close to Bob Knox advised us he recently hired a Marin County Attorney who specializes in criminal defense and white collar crimes to file a Personal Injury Claim. The claim was recently filed on behalf of Robert G Knox, RG Knox Company LLC, and CPC Holdings Inc. naming the Defendant in the case as “John Doe 1.” It is our understanding a claim against a “John Doe” reflects that a plaintiff is seeking to hold an unknown party responsible for a perceived injury. John Doe claims in the political environment have a long legal precedent of being viewed as “fishing trips.”

At this point, we have no information on what Mr. Knox’s claims or cause of action maybe, though it is notable that each of the plaintiffs has been mentioned in prior installments of the Back Story.

A source, who crosses paths with Bob Knox in the business world, indicates Mr. Knox is extremely unhappy with The Back Story.

We have also begun to see Bill Lockyer and his wife Nadia close ranks as it relates to our efforts to research and report on Alameda County. We have made two request of Bill Lockyer’s office, with no reply. Our request to Nadia Lockyer’s office was answered by her Chief of Staff implying they might consider answering our questions if those involved with The Back Story would first reveal themselves.

Nadia, how would the identities of people involved with The Back Story help you better answer questions related to your job as an elected official in Alameda County?

To date we have provided parties mentioned in The Back Story a professional courtesy and respect to address our questions in private, allowing them time to carefully reply. We may reconsider that approach in the coming months.

Perhaps Bill Lockyer, his wife and Bob Knox should take a lesson from Gavin Newsom. Mr. Newsom was the only UC Regent to openly embrace an invitation to discuss the issues of UC students at a recent Regent meeting. The balance of Mr. Newsom’s fellow board members abandoned the meeting after they faced pointed questions from students.

In closing this installment, we only need to read the front page of most major newspapers or Google current events to understand that the lack of governmental transparency and attempts to silence those that seek answers and/or peacefully protest is a road filled with endless political land mines, here and aboard. 

R.G. Knox Company LLC

We are back after a month of preparation for our next round of installments. Our absence has been spent delving into the finer details of earlier stories.

In prior installments, we touched on Bob Knox’s new investment banking firm, R.G. Knox Company LLC, located in Park City, Utah. This is the investment firm that at present is approved by the California State Treasurer’s Office to provide and underwrite investment activity of taxpayer funds.

It was brought to our attention the website for R.G. Knox Company LLC has a very conspicuous public misrepresentation which after investigation looks as if it were intentional. The website states “R.G. Knox Company, Established 1975.” In fact, public records from the State of Utah reflect R.G. Knox Company LLC was registered in 2005….NOT 1975. Further evidence of this intent to mislead clients arises from SEC Filings prepared, signed and filed by Bob's wife, Karla. These filings state for the record R.G. Knox Company LLC was not an active company until 2007. Ms. Knox is a registered CPA in California and Utah. Her involvement in this matter has been referred to the California and Utah agencies that oversee CPA's and their certification.

A source contacted Mr. Knox in an effort to sort out this matter. Bob stated he "started the company in San Francisco in 1975.” Well, last we checked San Francisco is NOT in Utah. Zion’s Bank (for whom Mr. Knox was recently employed) was contacted to determine their involvement, if any, with R.G. Knox Company LLC. As a publicly traded company, as well a bank, Zion’s has strict reporting requirements which must be followed. Any such involvement with R.G. Knox Company LLC must be publicly disclosed. Zion’s Bank did not appear to have any such records.

What we at The Back Story found very fascinating is Mr. Knox’s Utah based investment-banking firm was formed and active during a period of time for which he was an employee of Zion’s Bank in their investment banking division. This may raise relevant questions concerning conflicts of interest, self-dealing, and perhaps insider trading. The SEC, as well federal laws have strict guidelines for officers and employees of publicly traded banks and investment firms. Acting on behalf of your own private firm while an officer/employee of a publicly traded bank/investment firm is an area of interest in this post Madoff era.

Cover-up? Fraud? Domestic Spying?

My second installment was previously to be a continuation of my initial post; however, my “welcome” posting produced some fascinating information that has the prospective to bring Alameda County, Bob Knox, and his daughter (Kati Knox) into the investigation and national debate on illegal domestic spying on United States citizens.

In a recent Alameda County Court matter where-by Kati Knox was defending herself and her San Leandro based firm against fraud claims, court records reflect Ms. Knox invoked her Fifth Amendment rights against self incrimination when asked (under oath) to answer questions related to employment as a health care consultant in Washington DC.

Court records reflect an extended battle and exchange between Ms. Knox’s counsel and the Court regarding the sufficiency of invoking her Fifth Amendment rights in this proceeding. Despite the Court’s direct request for Ms. Knox to answer the questions related to her Washington DC employer, Ms. Knox did not answer and stood by her Fifth Amendment rights.

The Court made numerous additional request, and in doing so explained the seriousness of invoking her Fifth Amendment rights, and stated “even James Bond” or any employee of the “CIA” or “National Security…would have to say” under oath who their employer was. Ms. Knox’s counsel did not allow her to answer.

After further pressure from the Court to answer the question, things go from strange to memories of Watergate and Oliver North, as Ms. Knox’s counsel implies that even if Ms. Knox were to answer the question, “you wouldn’t get the company that she really worked for.” Ms. Knox’s counsel goes further and states there would be “criminal sanctions for disclosing the contents of that work that she (Ms. Knox) did.”

Personally, I am no legal expert; nevertheless implying to the Court’s of this Country your client (Ms. Knox) might commit perjury to cover-up her employers identity, as well be under threat of criminal sanctions for disclosing such raises very serious legal questions of what Ms. Knox and the Washington DC based company who employs her is actually doing, and why an apparent cover-up would be necessary.

In a closing exchange between Ms. Knox’s counsel and the Court, Ms. Knox’s counsel admits her client holds “a government job where she” (Ms. Knox) receives payment via a “shell company” for which “she’s not allowed to discuss, especially in open court.”

The information I have reviewed also indicates Ms. Knox admitted to purchasing a home in the Washington DC area and relocating her family. Despite the relocation and the stresses of a new job, her employer allowed her a great deal of freedom to regularly return to the Bay Area for business reasons that are extremely vague. Further, in what may have been a serious slip of the tongue, Ms. Knox’s counsel made reference during later questioning to a company or entity by the name of “Virginia Health Care Systems.”

I have gathered additional information that may further shore up Ms. Knox (Kati Knox) possible involvement in domestic spying activity. Ms. Knox has in the past used various last names including her maiden name as well versions of her married name Wrobel, Knox-Wrobel, and Granville. The latter name is the most intriguing, as Granville is Bob Knox’s middle name (Robert Granville Knox III). Ms. Knox has also used various versions of her first name such as Kathleen, Katie, and Kati.

Ms. Knox also has the following email addresses katik007@yahoo.com & kathleenlkw@yahoo.com. These addresses implore the question of arrogance and/or hiding in plain sight?

As I prepare to close my second installment, I will circle back to past Alameda County politicians and make in my opinion a simple connection between Kati Knox’s activities as noted above and her father, Bob Knox. This connection is supported with information available in World Wide Web that appears to claim Ms. Knox shared confidential and legally protected (Hipaa/Hippa) private patient medical information with her father. What is apparent from the information available is it looks as if both parties may have gone to great lengths in an attempt to cover-up this inadvertent, but apparently grave slip-up.

Please keep in mind Ms. Knox currently owns and operates a Residential Care Facility for the Elderly, which provides her access to confidential medical records of her patients. The US and California Department of Justice and the California Department of Social Services oversees and enforces very strict laws on the release and disclosure of medical data. Sharing such information in violation of the law has serious legal consequences on both a Federal and State level.

For reference, I spent a few minutes reviewing the history of Valerie Plame. I found it very interesting in that it appears once Valerie Plame’s identity was revealed and confirmed as an employee of the CIA, the CIA “lifted” and “rolled back her cover.” The CIA determined that “public interest outweighed” any “damage” from “disclosure” of “employment and cover status.” The apparent truth of Valerie Plame was out and her employer was making no further attempt to cover-up her employment or role with the CIA.

I believe it would be reasonable for a person to venture, that in light of Ms. Knox’s use of her Fifth Amendment rights, and her counsel’s aggressive defense of such, as well her counsel’s surprising admissions to the Court, Ms. Knox is likely, to this day, working in a covert manner for an unnamed government shell company.

(A great deal of additional data on this particular subject is being vetted and verified and will be shared at an appropriate time)

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)