LAS VEGAS (KLAS) — The leader of a company involved in a Las Vegas arena project to attract an NBA team has been indicted in Texas on bid-rigging allegations.

Tim Leiweke, chief executive officer of Oak View Group, is accused of orchestrating a conspiracy to rig the bidding process for the Moody Center, an arena built at the University of Texas in Austin. A federal grand jury returned the indictment on Wednesday, the Justice Department’s Antitrust Division announced.

Oak View announced Wednesday that Leiweke will transition from the position of CEO to vice chairman of the board of directors and remain a company shareholder. Chris Granger, president of OVG360 — Oak View’s venue management, service and hospitality arm — was named interim CEO.

Leiweke and Oak View Group are behind a Las Vegas arena project unveiled in 2023, initially planned in the south valley near the M Resort. Published reports suggest Oak View has abandoned that site and is considering putting the arena near the Rio Hotel & Casino, or possibly at Resorts World Las Vegas on the Strip.

Tim Leiweke speaks during a 2016 news conference in Las Vegas. (KLAS)

“This unprecedented project is an industry game-changer, and we will usher in the evolution of Las Vegas as the new entertainment AND sports capital of the world,” Leiweke said when the project was announced.

Oak View, based in Denver, develops arenas across the country.

The Moody Center, an NCAA host site for the first and second round of the women’s basketball tournament, is seen at the University of Texas in Austin, Texas, Monday, March 20, 2023. (AP Photo/Eric Gay)

According to Wednesday’s indictment, Leiweke told colleagues in September 2017 that he had learned another venue-services company, Legends Hospitality, was “bidding against us” for the project. An arrangement with the CEO Legends funneled subcontracts their way, and they didn’t bid on the arena.

Oak View Group ultimately submitted the only qualified bid and won the project.

“The arena opened to the public in April 2022, and OVG continues to receive significant revenues from the project to date,” according to the Justice Department.

OVG and Legends Hospitality have agreed to pay $15 million and $1.5 million in penalties, respectively, in connection with the conduct alleged in the indictment against Leiweke.

Leiweke is charged with a violation of Section 1 of the Sherman Act, which could carry a maximum sentence of 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.

The U.S. Department of Labor, Office of Inspector General and the FBI’s New York Field Office are investigating the case.

A statement from Leweike was posted on Oak View Group’s website:

“It has been my great honor to help found and lead OVG as it has grown into the special, customer-oriented company it is today. While I’m pleased the company has resolved its Department of Justice Antitrust Division inquiry without any charges filed or admission of wrongdoing, the last thing I want to do is distract from the accomplishments of the team or draw focus away from executing for our partners, so the Board and I decided that now is the right time to implement the succession plan that was already underway and transition out of the CEO role. In my new role as Vice Chairman of the Board and as an OVG shareholder, I remain as committed as ever to the long-term success of the company, and I know OVG, our valued partners and our customers are in great hands with Chris and the rest of our stellar leaders.”

Oak View Group released a separate statement:

“Oak View Group cooperated fully with the Antitrust Division’s inquiry and is pleased to have resolved this matter with no charges filed against OVG and no admission of fault or wrongdoing. We support all efforts to ensure a fair and competitive environment in our industry and are committed to upholding industry-leading compliance and disclosure practices. We are proud of the partnerships we’ve built, and remain committed to continuing to offer exceptional hospitality and holistic venue management solutions and venue development expertise which deliver value to our venue partners, fellow service providers, and the communities and customers we serve.”

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