Tim Leiweke to step down as OVG CEO after criminal indictment, company to pay $15M fine

Jesus Reyes

COACHELLA VALLEY, Calif. (KESQ) – Tim Leiweke has stepped down as the CEO of the Oak View Group after being criminally indicted by a federal grand jury for allegedly orchestrating a conspiracy to rig the bidding process for an arena in Texas, the Department of Justice announced.

OVG said Leiweke, 68, will remain a shareholder and transition to vice chairman of the board of directors, according to CNBC.

OVG is the owner of Acrisure Arena and the Coachella Valley Firebirds. Leiweke is the co-founder of the company. The company also recently reached an agreement to manage the historic Plaza Theatre in Palm Springs and is negotiating with the city to take over tourism and management services of the Palm Springs Convention Center.

The DOJ says that Leiweke, 68, is charged with a violation of Section 1 of the Sherman Act. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine, although he 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.

If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Statement from a spokesperson for Tim Leiweke:

“Mr. Leiweke has done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity. The Antitrust Division’s allegations are wrong on the law and the facts, and the case should never have been brought. The law is clear: vertical, complementary business partnerships, like the one contemplated between OVG and Legends, are legal. These allegations blatantly ignore established legal precedent and seek to criminalize common teaming efforts that are proven to enhance competition and benefit the public. The Moody Center is a perfect example, as it has resulted in substantial and sustained benefits to the University of Texas and the City of Austin.”

According to the DOJ, the indictment alleges that from approximately February 2018 through at least June 2024, Leiweke conspired with the Chief Executive Officer of a competitor to rig the bidding for the development, management, and use of a multi-purpose arena that was to be located on the campus of a public university in Austin, Texas (the “Arena Project”).

According to CNBC, the second company was Legends Hospitality, a New York-based venue services company whose minority owners include the New York Yankees and the Dallas Cowboys.

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, the DOJ announced.

Statement from OVG:

“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.”

“Timothy Leiweke allegedly led a scheme designed to steer the contract for entertainment services at a public university’s arena to his company. Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field,” said Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office. “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 public institutions.”

According to the indictment, in September 2017, Leiweke informed colleagues that he had learned another venue-services company was “bidding against us” for the Arena Project and wanted to “find a way to get [the competitor] some of the business” and “get them to back down.” 

In November 2017, Leiweke informed others that he was “[m]ore than happy talking to [the competitor] about not bidding and [receiving certain subcontracts]” but had “no interest in working with them if they intend on putting in a bid.”

In February of 2018, Leiweke ultimately reached an agreement with the competitor’s CEO, pursuant to which the competitor agreed that it would stand down and neither submit nor join an independent competing bid for the Arena Project. In exchange for the competitor’s agreement to stand down, Leiweke represented that the competitor would receive Arena Project’s subcontracts.

Consistent with the bid-rigging agreement, the competitor did not submit a competing bid for the Arena Project. OVG ultimately submitted the sole qualified bid and won the Arena Project.  The arena opened to the public in April 2022, and OVG continues to receive significant revenues from the project to date.

Statement from City of Palm Springs

The City of Palm Springs is aware of the recent federal indictment of Oak View Group CEO Tim Leiweke and understands that this news may raise concerns within our community. While the allegations are serious, they pertain solely to activities entirely unrelated to the City of Palm Springs, the Palm Springs Convention Center, or the Plaza Theatre.

The City’s selection of OVG as the preferred operator for the Palm Springs Convention Center followed a rigorous, transparent, and competitive procurement process. A panel composed of City staff and community representatives evaluated all qualified proposals, and OVG received the highest overall recommendation based on merit. The City remains confident in the integrity of this process, which adhered to the highest ethical and professional standards.

Contract negotiations with OVG are ongoing and remain on schedule. A final agreement is expected to be presented to the City Council for consideration later this month. The City continues to closely monitor developments and remains committed to transparency and public trust throughout this process.

We look forward to partnering with OVG to revitalize the Convention Center into a world-class venue that drives economic growth, creates quality jobs, and provides outstanding cultural and event programming for residents and visitors alike. The City of Palm Springs holds itself and its partners to the highest standards of accountability, and we will continue to keep our community fully informed as this process moves forward.

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Man charged with attempted murder after Coachella shooting

Jesus Reyes

INDIO, Calif. (KESQ) – A man has been charged in connection with a shooting that left one person injured in Coachella earlier this week.

Cecilio Nando-Gonzalez, 28, has been charged with attempted murder and assault with a deadly weapon.

Nando-Gonzalez was arrested Monday morning after a shooting at around 10:00 a.m. on the 84000 block of Avenue 51.

A caller told police that a man had been shot during a dispute, the Riverside County Sheriff’s Office said.

“When deputies arrived, they rendered medical aid to the victim and had him transported to a local hospital in stable condition,” RSO wrote in an email to News Channel 3.

Nando-Gonzalez was found in a separate structure on the property, where he was taken into custody, the agency confirmed.

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Coachella Valley Firebirds 2025-26 home opener set for October 10

Zachariah Perez

PALM DESERT, Calif. (KESQ)- The American Hockey League announced 2025-2026 home openers for all teams, including the Coachella Valley Firebirds.

Mark your calendars 🗓️ #LetsFly

Secure your seats now by becoming a season ticket member! Get more info here: https://t.co/X0UXOqfXIW pic.twitter.com/lbLn5wmTtu

— Coachella Valley Firebirds (@Firebirds) July 9, 2025

The Firebirds first home game will be Friday, Oct. 10 against the San Diego Gulls at Acrisure Arena.

The full 72-game schedule is expected to be released on Thursday.

The Firebirds will be entering their 4th year as a franchise, looking to make the Calder Cup Playoffs for the 4th straight season.

The Firebirds ended their 2024-25 season with a 37-25 record, falling short in the Pacific Division Semifinals to the Abbotsford Canucks, who went on to win the Calder Cup.

Stay with News Channel 3 for Firebirds’ updates.

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Tamarisk trees burn near I-10 east of Bob Hope

Jesus Reyes

CATHEDRAL CITY, Calif. (KESQ) – Firefighters are working to put out a tamarisk tree fire burning near Interstate 10 near the Bob Hope exit.

CAL FIRE confirmed the fire is an eighth of an acre and is burning at a slow rate of spread.

There is no impact on the freeway or any nearby roadways.

Resources are expected to remain at the scene for about an hour and a half, according to CAL FIRE.

Stay with News Channel 3 for any updates.

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Desert Hot Springs has high hopes for new Desert Community Animal Center

Kendall Flynn

DESERT HOT SPRINGS, Calif. (KESQ) – The City of Desert Hot Springs in partnership with the Greater Palm Springs Animal Allies is opening its new Desert Community Animal Center Wednesday for all residents.

The City has not had a veterinary clinic since 2018, and pet owners had to travel far distances in a time or need or emergencies. Longtime resident Peter Carlson said this has been difficult to do, and he’s been waiting for a local clinic.

“We’ve not really had anything here, we’ve had to go to Thousand Palms, Palm Springs [and] Beaumont,” Carlson said. “We know we can come here and get the care for our family members. They kind of really are for us, so it’s about time.”

The animal center will provide low-cost services to all guests, which the Greater Palm Springs Animal Allies Executive Director Dan Rossi said was an important aspect of bringing it to the local community.

“Our services will be affordable,” Rossi said. “They’ll be on a sliding scale to help anybody depending on their income level.”

Desert Hot Springs Mayor Scott Matas said it will fill the needs of everyone in the community, including his own as a pet owner. Officials are unsure of how many animals they’re expecting to see at the facility, but they do anticipate being busy.

Matas also hopes the center will help with the City’s greater need for upgrades for its Animal Care and Control services. Desert Hot Springs announced this week on social media it will be slowly making changes to the care and control programs by creating a new strategy for pet adoptions.

While the animal center is not directly affiliated with either of the City’s Animal Care and Control facilities, officials hope the low-cost spay and neuter services will help reduce stray population and overall aiding the shelters cause.

“When it comes to your animals, just make sure that they’re spayed and neutered – they’re chipped” Mayor Matas said. “You have those opportunities here in Desert Hot Springs now to get that done at a very low cost rate that helps us control the population.”

DHS residents agree with this sentiment and hope it will also influence people to adopt pets from their local sanctuaries.

“Hopefully with this facility here and our animal shelter here, people will know that they have a place to bring a rescue,” Carlson said. “I think that knowing there’s a facility right next door that they can bring whatever animal they adopted, maybe they’re more likely to adopt.”

Stay with News Channel 3 to hear from residents and officials on what this new animal center bring to Desert Hot Springs.

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Cathedral City officials seized fewer illegal Fourth of July fireworks than ever before

Tori King

CATHEDRAL CITY, Calif. (KESQ)– Have you ever wondered what happens to all of the illegal fireworks that are confiscated by Police Departments on the Fourth of July?

According to Cathedral City Fire and EMS, they are collected by the Cathedral City Police Department and dropped off at Fire Station #2.

“Once the fireworks are seized from the homeowners, we transport them to the fire department,” said Nathaniel Hanley, a Police Commander with CCPD. “Because they have a safer place to store them than here at the police department, and they are more familiar with explosives and anything that can be flammable or spark a fire.”

From there, they are stored inside a safe room until CalFire is able to send a team to pick them up and destroy them.

This year, the pile of seized fireworks was the smallest its ever been.

“When I came in on Monday and looked at this, I was like, is this it,” Cathedral City Fire and EMS Chief Michael Contreras. “Because in previous years we had a lot more than this. And so it’s a good thing we had so little, it really means people are listening to the laws.” In year’s past, the amount of fireworks confiscated would fill several truck loads. This year, the tiny pile of mortars, sparklers, and fountains only fit inside a small trunk.

Officials, including Chief Contreras, believe the city’s aggressive and extensive marketing blitz all over town may have helped spread awareness of illegal firework prevention, as well as the consequences if caught with them in your possession.

“Our campaign that we put out on the bus stops, on the side of all Cathedral City vehicles, that completely focus on safety, it really paid off this year,” said Contreras. “Just says a lot to who we are as a city. We really focus on the safety of our people, and this is just an extension of that. We were successful this year, we’re probably going to have to step it up next year so that we continue to build a safe community.”

City leaders also credit the community with this year’s success, adding that residents made smart choices that kept their neighbors accountable, and their neighborhoods safe.

“In years past, we’ve had houses catch on fire, yards and trees catch on fire, and structures,” said Hanley. “This year we had none of that. So we’re extremely thankful to our community for listening.”

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Trump administration sues California over trans athletes in girls’ sports

City News Service

SANTA ANA, Calif. (KESQ) – The U.S. Department of Justice today sued the state of California, warning that by allowing transgender athletes to compete against biological females in high-school sports, the state was putting billions of dollars in federal educational funding at risk in continuing a practice the Trump administration contends is discriminatory, demeaning and violates civil rights law.

According to the complaint, filed in federal court in Santa Ana, California’s policies and practices “ignore undeniable biological differences between boys and girls, in favor of an amorphous `gender identity.’ The results of these illegal policies are stark: girls are displaced from podiums, denied awards, and miss out on critical visibility for college scholarships and recognition.”  

The suit accuses the California Department of Education and the California Interscholastic Federation of engaging in illegal sex discrimination against female student athletes by allowing males to compete against them. The DOJ alleges the state’s policies deprive girls of the equal education and athletic opportunities afforded to them by federal law’s Title IX prohibition against sex-based discrimination in any education program or activity that receives federal funding.

“California is on the wrong side of the law and the wrong side of history,” U.S. Attorney Bill Essayli of the Central District of California said in a statement. “Women deserve dignity, respect, and an equal opportunity to compete on their own sports teams. The time for talk is over. California must comply with Title IX and end its civil rights violations against women. No person, no state, is above the law.”  

California officials deny the state’s policy is breaking the law. Earlier this week, the state refused demands by the Trump administration to ban transgender athletes from girls’ and women’s school athletic teams. State officials could not immediately be reached for comment.

The suit says that the U.S. Department of Education’s allocation of funds to California for the current year totals nearly $44.3 billion, of which about $3.8 billion remains available for use by the state’s education department.   

In June, President Donald Trump threatened California with possible fines and loss of federal education funds for allowing a transgender athlete from Jurupa Valley High School to compete in a state track and field meet.   

“The Governor of California has previously admitted that it is `deeply unfair’ to force women and girls to compete with men and boys in competitive sports,” Attorney General Pamela Bondi said. “But not only is it `deeply unfair,’ it is also illegal under federal law. This Department of Justice will continue its fight to protect equal opportunities for women and girls in sports.”  

The DOJ contends that allowing transgender athletes to compete against biological females “is not only illegal and unfair but also demeaning, signaling to girls that their opportunities and achievements are secondary to accommodating boys.”   

The federal government alleges that such competition “erodes the integrity of girls’ sports, diminishes their competitive experience, and undermines the very purpose of Title IX: to provide equal access to educational benefits, including interscholastic athletics.” Despite warnings from the U.S. Department of Education, the CDE and CIF “continue to require California schools to allow boys to compete against girls,” the complaint states.   

Assistant Attorney General Harmeet K. Dhillon posted on X that “California won’t get away with allowing males to take girls’ athletic opportunities away.”

CDE has authority over CIF and local school districts’ interscholastic athletic policies, and CIF oversees 1.8 million students and over 750,000 student-athletes in grades 9 through 12, the lawsuit noted.

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Valley cities protecting the homeless from extreme heat, voting on additional funding for services

Gavin Nguyen

PALM SPRINGS, Calif. (KESQ) – City officials in Palm Springs and Cathedral City are set to vote on approving additional funds for homeless services Wednesday night.

The three-year agreements with the Coachella Valley Association of Governments, or CVAG, will be handled by CVAG’s “CV Housing First” program. The program has been running since 2017.

Palm Springs will vote on approving $390,200 for the agreement, while Cathedral City will vote on approving $125,000 per year over three years, totaling $375,000.

City officials and homeless shelters are highlighting the importance of these services, especially when it comes to keeping people safe from extreme heat.

Data from Riverside County from this year shows 187 heat-related emergency department visits in the Coachella Valley so far. Data for heat-related deaths in 2025 is not yet available. The Coachella Valley’s unsheltered population is a group vulnerable to heat-related illness.

Stay with News Channel 3 for the latest.

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Highway 111 project in La Quinta underway, what you need to know

Luis Avila

LA QUINTA, Calif. (KESQ) – Work on the Highway 111 Pavement Rehab Improvement Project is underway, and the impacts are already being felt by commuters and surrounding businesses.

A vital, two-mile artery, thousands of commuters use highway 111 in La Quinta. Some say the once-smooth stretch of road has become a bumpy one, with potholes, uneven asphalt, and cracks. Drivers say improvements have been long overdue.

“Coming back to the area, a little shocked, disappointed. I remember the roads like 111 being a little bit smoother to drive on.”

Martha Black, La Quinta resident

“I’m actually glad to see some of those being repaired. I see that’s why a lot of the streets are being repaired. I’m excited about that.”

Michael Lacey, Indio resident

After months of delays, construction is taking place between west of Washington St to Jefferson St.

Work includes:

Pothole repairs

Repaving

Medium repairs

Landscaping improvements

This is welcoming news even for surrounding business owners. But with roads in the area impacted, this is bringing separate challenges.

“It does not help our business because we are already struggling with the heat so people not being able to come into our parking lot affects us as well.”

Heidi McArthur, Jadabug’s Kids Boutique

Business owners are doing what they can to offset some of the impacts.

“We’re trying to reward local people for shopping here, encouraging people to shop local as much a possible. Being cognizant of the construction going on and how it may be impacting local businesses and trying to shop there.”

Heidi McArthur, Jadabug’s Kids Boutique

At least one lane may be closed in each direction during construction, so drivers can expect traffic delays.

The project, which costs $7 million, is expected to run from June 23, 2025 to October 2025.

For more information, click here.

Stay with News Channel 3 for more.

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Four rescued from Ladder Canyon hiking area in Mecca

KESQ News Team

MECCA, Calif. (KESQ) — Four people, including two adults and two children, were rescued Tuesday from an area of Ladder Canyon in Mecca, according to CAL FIRE Riverside County.

Firefighters responded to the scene with assistance from the Riverside County Sheriff’s Department’s Star 9 aviation unit and a specialized rescue cart. The group was in rugged terrain.

Officials said the rescue was successful and no injuries were reported.

Authorities are reminding hikers to stay hydrated and take precautions when exploring remote areas, especially during extreme heat.

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