Tom Knox
Encyclopedia
Tom Knox is an American businessman and politician. He was second in the Democratic
nomination for Mayor of Philadelphia on May 15, 2007. He is notable for his pledge to spend up to fifteen million dollars of his own money in the race. After considering a run in 2008
for state treasurer
, Knox announced his entry into the 2010 Pennsylvania gubernatorial election
in August of 2008. He ended his gubernatorial camapaign in January of 2010, and endorsed Dan Onorato
. Knox is said to be considering running a second run for Philadelphia Mayor in the 2011 election, this time as an Independent.
, Knox was a successful entrepreneur who built an insurance advisory firm and sold it for nearly six million dollars in 1986. In the late 1980s he began buying and turning around underperforming companies.
Among his targets was Crusader Savings which he later sold to Royal Bank of Pennsylvania for seventeen million dollars. Knox was credited with significantly increasing the bank's income, though has been criticized for his methods. The bank's income increased through the use of payday loan
s which charge high interest rates and are under fire from a number of states. The Office of Thrift Supervision
, one of the country's bank regulators, later expressed concerns over several of the bank's businesses, including the payday lending business.
In 1999, Knox acquired Fidelity Insurance Group, a Maryland health insurance firm which he sold to UnitedHealth Group
in 2004 for a gain of over twenty million dollars. After the acquisition, Knox became the CEO
of UnitedHealthcare of Pennsylvania, a UHG subsidiary. He resigned his position in 2006 in order to run for mayor.
. He served for one and a half years, accepting only one dollar a year in salary. Rendell credited Knox with helping to save the city seven million dollars on better leases for office space. Knox was also involved in negotiating lower health care costs for city employees. Knox has been a major contributor and fund-raiser for various local politicians.
In December 2006, Knox announced his campaign for mayor
and lent five million dollars to his campaign. In response to criticism that he was trying to buy City Hall, Knox replied that he was trying to "buy City Hall back for the people of Philadelphia". Thanks to his cash advantage, Knox was one of the first candidates to go on the air with television commercials. The early advertising, which attacked city corruption and high business taxes, proved to be significant in raising Knox's poll numbers from 1% to 25%, and placed him in first place for the first time in March 2007.
Knox's business practices came under increasing criticism during the campaign. The Philadelphia Daily News reported that his insurance company was fined $125,000 in Maryland for a number of violations including hiring a compliance officer who had a felony record for embezzlement. In addition, other candidates have attacked his lack of experience in government and the payday loan practices of his bank. Several 527 group
s were created with funding from union sources and from supporters of candidate Rep. Bob Brady
. However, local television stations refused to run the ads, requesting more documentation of the charges against Knox. The new '527' money did prompt Knox to put another $3 million of his own money into the race to counter the ads, which raised his personal total to $8 million. Knox finished second in the Democratic primary with 25% of the vote, losing to Michael Nutter.
In August 2008, Knox announced his candidacy for Pennsylvania's 2010 gubernatorial election
; he dropped out of the race in January 2010, giving his support to Allegheny County
Executive Dan Onorato
.
neighborhood of the city. He currently lives in Rittenhouse Square
, Philadelphia. Tom has purchased three units in the high-rise condo Residences at Two Liberty Place with plans to convert them into a single 5500 square feet (511 m²) unit on the 46th floor. Tom is married to Linda Knox, and together they have two sons.
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
nomination for Mayor of Philadelphia on May 15, 2007. He is notable for his pledge to spend up to fifteen million dollars of his own money in the race. After considering a run in 2008
Pennsylvania State Treasurer election, 2008
Pennsylvania's election for Treasurer was held on November 4, 2008. Democratic incumbent Treasurer Robin Wiessmann had been appointed by Governor Ed Rendell to fill Bob Casey Jr.'s term when he was elected to the U.S...
for state treasurer
Pennsylvania Treasurer
The Pennsylvania Treasurer is the head of the Pennsylvania Department of the Treasury, which is the custodian of virtually all the Commonwealth of Pennsylvania's funds....
, Knox announced his entry into the 2010 Pennsylvania gubernatorial election
Pennsylvania gubernatorial election, 2010
The Pennsylvania gubernatorial election of 2010 was held on November 2, 2010. The winning candidates for Governor and Lieutenant Governor will serve a four-year term from 2011 to 2015. Candidates for Lieutenant Governor were nominated in a separate primary contest; however, the Lieutenant Governor,...
in August of 2008. He ended his gubernatorial camapaign in January of 2010, and endorsed Dan Onorato
Dan Onorato
Daniel "Dan" Onorato is the current Chief Executive of Allegheny County, Pennsylvania. On Tuesday, May 18, 2010, Onorato won a crowded four-way primary to become the Democratic nominee for governor...
. Knox is said to be considering running a second run for Philadelphia Mayor in the 2011 election, this time as an Independent.
Business career
A high school dropout who later earned a GED in the United States NavyUnited States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...
, Knox was a successful entrepreneur who built an insurance advisory firm and sold it for nearly six million dollars in 1986. In the late 1980s he began buying and turning around underperforming companies.
Among his targets was Crusader Savings which he later sold to Royal Bank of Pennsylvania for seventeen million dollars. Knox was credited with significantly increasing the bank's income, though has been criticized for his methods. The bank's income increased through the use of payday loan
Payday loan
A payday loan is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card...
s which charge high interest rates and are under fire from a number of states. The Office of Thrift Supervision
Office of Thrift Supervision
The Office of Thrift Supervision was a United States federal agency under the Department of the Treasury that charters, supervises, and regulates all federally- and state-chartered savings banks and savings and loans associations. It was created in 1989 as a renamed version of another federal agency...
, one of the country's bank regulators, later expressed concerns over several of the bank's businesses, including the payday lending business.
In 1999, Knox acquired Fidelity Insurance Group, a Maryland health insurance firm which he sold to UnitedHealth Group
UnitedHealth Group
UnitedHealth Group Incorporated is a diversified health and "well-being" company. Headquartered in Minnetonka, Minnesota, UnitedHealth Group offers a spectrum of products and services through two operating businesses: United Healthcare and Optum. Through its family of subsidiaries and divisions,...
in 2004 for a gain of over twenty million dollars. After the acquisition, Knox became the CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of UnitedHealthcare of Pennsylvania, a UHG subsidiary. He resigned his position in 2006 in order to run for mayor.
Political career
Knox briefly interrupted his business career to serve as Deputy Mayor for Management and Productivity under then-Mayor Ed RendellEd Rendell
Edward Gene "Ed" Rendell is an American politician who served as the 45th Governor of Pennsylvania. Rendell, a member of the Democratic Party, was elected Governor of Pennsylvania in 2002, and his term of office began January 21, 2003...
. He served for one and a half years, accepting only one dollar a year in salary. Rendell credited Knox with helping to save the city seven million dollars on better leases for office space. Knox was also involved in negotiating lower health care costs for city employees. Knox has been a major contributor and fund-raiser for various local politicians.
In December 2006, Knox announced his campaign for mayor
Philadelphia mayoral election, 2007
The 2007 Philadelphia mayoral election was held on November 6, 2007 when Philadelphia, Pennsylvania, United States elected Michael Nutter as the Mayor of Philadelphia starting in 2008. The incumbent mayor, John F. Street was barred from seeking a third term because of term limits...
and lent five million dollars to his campaign. In response to criticism that he was trying to buy City Hall, Knox replied that he was trying to "buy City Hall back for the people of Philadelphia". Thanks to his cash advantage, Knox was one of the first candidates to go on the air with television commercials. The early advertising, which attacked city corruption and high business taxes, proved to be significant in raising Knox's poll numbers from 1% to 25%, and placed him in first place for the first time in March 2007.
Knox's business practices came under increasing criticism during the campaign. The Philadelphia Daily News reported that his insurance company was fined $125,000 in Maryland for a number of violations including hiring a compliance officer who had a felony record for embezzlement. In addition, other candidates have attacked his lack of experience in government and the payday loan practices of his bank. Several 527 group
527 group
A 527 organization or 527 group is a type of American tax-exempt organization named after "Section 527" of the U.S. Internal Revenue Code...
s were created with funding from union sources and from supporters of candidate Rep. Bob Brady
Bob Brady
Robert A. "Bob" Brady is the U.S. Representative for , serving since 1998, and the ranking Democrat on the United States House Committee on House Administration since 2007...
. However, local television stations refused to run the ads, requesting more documentation of the charges against Knox. The new '527' money did prompt Knox to put another $3 million of his own money into the race to counter the ads, which raised his personal total to $8 million. Knox finished second in the Democratic primary with 25% of the vote, losing to Michael Nutter.
In August 2008, Knox announced his candidacy for Pennsylvania's 2010 gubernatorial election
Pennsylvania gubernatorial election, 2010
The Pennsylvania gubernatorial election of 2010 was held on November 2, 2010. The winning candidates for Governor and Lieutenant Governor will serve a four-year term from 2011 to 2015. Candidates for Lieutenant Governor were nominated in a separate primary contest; however, the Lieutenant Governor,...
; he dropped out of the race in January 2010, giving his support to Allegheny County
Allegheny County, Pennsylvania
Allegheny County is a county in the southwestern part of the U.S. state of Pennsylvania. As of the 2010 census, the population was 1,223,348; making it the second most populous county in Pennsylvania, following Philadelphia County. The county seat is Pittsburgh...
Executive Dan Onorato
Dan Onorato
Daniel "Dan" Onorato is the current Chief Executive of Allegheny County, Pennsylvania. On Tuesday, May 18, 2010, Onorato won a crowded four-way primary to become the Democratic nominee for governor...
.
Personal
Knox was raised in public housing in the East FallsEast Falls, Philadelphia, Pennsylvania
East Falls is a neighborhood in the Northwest section of Philadelphia, Pennsylvania, United States. East Falls is located adjacent to Roxborough, Manayunk, and Germantown, and Fairmount Park. The neighborhood runs along a stretch of Ridge Avenue that is only a few miles long, along the banks of the...
neighborhood of the city. He currently lives in Rittenhouse Square
Rittenhouse Square
Rittenhouse Square is one of the five original open-space parks planned by William Penn and his surveyor Thomas Holme during the late 17th century in central Philadelphia, Pennsylvania. The park cuts off 19th Street at Walnut Street and also at a half block above Manning Street. Its boundaries are...
, Philadelphia. Tom has purchased three units in the high-rise condo Residences at Two Liberty Place with plans to convert them into a single 5500 square feet (511 m²) unit on the 46th floor. Tom is married to Linda Knox, and together they have two sons.