LAS VEGAS (KLAS) — The chief of an organization concerned in a Las Vegas enviornment venture to draw an NBA crew has been indicted in Texas on bid-rigging allegations.
Tim Lieweke, chief government officer of Oak View Group, is accused of orchestrating a conspiracy to rig the bidding course of for an enviornment on the College of Texas in Austin. A federal grand jury returned the indictment on Wednesday, the Justice Division’s Antitrust Division introduced.
Lieweke and Oak View Group are behind a Las Vegas enviornment venture unveiled in 2023, initially deliberate within the south valley close to the M Resort. Revealed stories counsel Oak View has deserted that website and is contemplating placing the sector close to the Rio Lodge & On line casino, or presumably at Resorts World Las Vegas on the Strip.
“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 stated when the venture was introduced.
Oak View, based mostly in Denver, develops arenas throughout the nation.
In line with Wednesday’s indictment, Leiweke informed colleagues in September 2017 that he had realized one other venue-services firm was “bidding against us” for the venture. An association with the opposite firm funneled subcontracts their approach, they usually did not bid on the sector.
Oak View Group finally submitted the one certified bid and gained the venture. The Moody Middle opened in April 2022.
“The arena opened to the public in April 2022, and OVG continues to receive significant revenues from the project to date,” in response to the Justice Division.
OVG and Legends Hospitality have agreed to pay $15 million and $1.5 million in penalties, respectively, in reference to the conduct alleged within the indictment towards Leiweke.
Leiweke is charged with a violation of Part 1 of the Sherman Act, which might carry a most sentence of 10 years in jail and a $1 million prison advantageous. The advantageous could also be elevated to twice the acquire derived from the crime or twice the loss suffered by the victims of the crime if both quantity is bigger than the statutory most advantageous.
The U.S. Division of Labor, Workplace of Inspector Common and the FBI’s New York Subject Workplace are investigating the case.
