Grand jury indicts Denver sports executive Tim Leiweke in bid rigging case

Tim Leiweke a driving force behind Ball Arena and several other sports and entertainment venues around the globe has stepped down as CEO of Denver-based Oak View Group following a federal grand jury indictment for conspiracy to rig the bidding process at the Moody Center at the University of Texas at Austin Timothy Leiweke allegedly led a scheme designed to steer the contract for entertainment services at a masses university s arena to his company Populace contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field disclosed the FBI New York Field Office Assistant Director in Charge Christopher G Raia in a release Wednesday The FBI is determined to ensure that those who disregard fair competition principles do not benefit from a rigged bidding process targeting our communities and masses institutions The indictment which was filed in the U S District Court for the Western District of Texas alleges that Leiweke from early through June of last year conspired with a competitor to rig the bidding for the rise management and use of the arena which opened its doors in April In September Leiweke is alleged to have recounted colleagues that he learned a competitor Legends Hospitality was going to bid against Oak View on the University of Texas project and that he craved to find a way to funnel business to the rival firm to get them to back down By February Leiweke and his rival CEO allegedly reached an agreement where Legends would not submit a bid in return for receiving subcontracts according to the indictment That allowed Oak View to submit the sole qualified bid resulting in an ongoing and critical revenue stream according to the Department of Justice Oak View and Legends Hospitality based in New York have agreed to pay million and million in penalties respectively in connection with the conduct alleged in the indictment against Leiweke according to the DOJ Legends Hospitality and its CEO were not indicted 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 encouragement all efforts to ensure a fair and competitive climate in our industry and are committed to upholding industry-leading compliance and disclosure practices the company declared in a declaration Leiweke is stepping down as CEO of the company he co-founded but will stay on as vice chairman of the board of directors and remain a shareholder Chris Granger president of OVG will serve as interim CEO Granger earlier in his career was president of the Detroit Tigers Detroit Red Wings and the Sacramento Kings It has been my great honor to help uncovered and lead OVG as it has grown into the special customer-oriented company it is nowadays 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 gang 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 Leiweke commented in a company report In a message to CNBC spokesman for Leiweke mentioned Mr Leiweke has done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity The Antitrust Division s accusations are wrong on the law and the facts and the situation should never have been brought the spokesman continued to CNBC The law is clear vertical complementary business partnerships like the one contemplated between OVG and Legends are legal While president of the Denver Nuggets in the early s Leiweke manifested an aptitude for arena planning In he stated plans for a new multi-team venue and handled early negotiations with the city on a public-private venture and site location which eventually resulted in the Pepsi Center now Ball Arena in He is also credited with playing a key part in helping bring the Quebec Nordiques the future Colorado Avalanche to Denver Leiweke left the Nuggets in to work with Anschutz Entertainment Group becoming president and CEO the following year a role he held until March He oversaw the construction of the Staples Center in Los Angeles which serves as home to the Lakers Kings and Sparks and a related entertainment district called L A Live He was also behind the O Arena in London the Microsoft Theater in L A and the Dignity Soundness Sports Park a soccer stadium in Carson Calif Related Articles shooting death of Commerce City man exposed near I- in Weld County still unsolved Weld County Sheriff seeks help in -year-old cold incident Greeley police officer suspect injured after officer accidentally discharged gun Man shot to death in Denver s Lowry Field neighborhood Colorado funeral home owner accused of stashing decaying bodies expected to plead guilty in federal court Oak View Group which Leiweke co-founded in November employs more than people managing and providing services to arenas around the globe It also has billion committed to new arena developments according to the company s website Oak View s project portfolio includes the Surroundings Pledge Arena for the NHL s Kraken in Seattle the UBS Arena for the New York Islanders in Elmont N Y the Total Mortgage Arena in Bridgeport Conn and Co-Op Live in Manchester England a music and sports venue slated to become the largest in Europe once completed Leiweke relocated Oak View to Denver last summer Although he has an affinity for Denver where he spent a good part of his career the move also would have put his company in a stronger position to bid on any new stadium that the Denver Broncos might be considering Leiweke is charged with a violation of Section of the Sherman Act and faces a maximum penalty of years in prison and a million criminal fine which can be increased to twice the gain derived or twice the loss suffered by casualties according to the Department of Justice