AUSTIN, Texas — A federal grand jury has indicted the chief executive officer of Oak View Group, a finalist under consideration to build a new $400 million arena at LSU, leading to the CEO's reported resignation.

The U.S. Attorney's office for the western district of Texas accused Timothy J. Leiweke of "orchestrating a conspiracy to rig the bidding process" for the Moody Center at the University of Texas. The crime occurred between February 2018 and June 2024, at a minimum, the government said.

Assistant Attorney General Abigail Slater said Leiweke's actions deprived the public and the university of the benefits of competitive bidding.

The prosecutors allege Leiweke discovered that a company similar to his was "bidding against us" for the Texas arena project and sought to divert business its way in return for its backing down. Allegedly, in November 2017, he told others he was happy to talk to the competitor but only if it didn't follow through with its own bid.

According to Billboard, Leiweke sent an email denying any wrongdoing but announcing his resignation as CEO. He still plans to serve as vice-chairman on the board of directors.

According to the prosecutors, Oak View Group has agreed to pay $15 million in penalties for its role in conduct described in the indictment; Legends Hospitality will pay $1.5 million.

The Baton Rouge Business Report, citing a Bloomberg report, said  Oak View and Legends colluded over the Moody Center bidding and that Oak View subsequently did not award subcontracts to Legends.

BRBR also reported that LSU Athletic Director Scott Woodward said in May that Oak View was the final firm being looked at to build a $400 million arena at LSU.