CEO Indictment Sparks Public Backlash
Corpus Council Slams OVG as CEO Timothy J. Leiweke faces a federal indictment for allegedly conspiring to rig a bidding process tied to a university project in Austin. According to the U.S. Department of Justice, OVG and its affiliate, Legends Hospitality, agreed to pay a combined $16.5 million in fines related to the charges.
The shocking news quickly drew a response from city officials.
No Show at Council Meeting Raises Eyebrows
Corpus Council Slams OVG for its absence at a critical council meeting and its recent controversial decisions. What added fuel to the fire was the company’s failure to send a representative to address the indictment of CEO Timothy J. Leiweke. During the session, City Attorney Miles Risley gave a brief presentation outlining the federal charges, but no one from OVG appeared to offer answers or defend the company’s actions.
This silence infuriated Councilman Eric Cantu.
“I’m just disappointed with them,” Cantu said. “First, with the naming rights. I think they screwed over the taxpayers. They left a lot of money on the table, and then this happens.”
Cantu pointed to OVG’s recent decision to award naming rights for the American Bank Center to Hilliard Law—even though prominent Corpus Christi attorney Thomas J. Henry had submitted the highest bid. Previously, he had publicly supported Henry’s offer, emphasizing that it would have delivered greater financial value to the city.
Calls for Termination and Change
Frustrated, Cantu asked Risley what it would cost to sever ties with OVG. Although Risley didn’t have an exact figure, he noted that the current agreement expires in 2027. Therefore, he advised the city to begin planning for a replacement a year in advance.
Cantu emphasized that if he had the necessary votes, he would remove OVG immediately.
Councilwoman Carolyn Vaughn shared similar outrage, stating, “It’s disturbing that we’re still doing business with a company tainted by this kind of scandal. This contract has us stuck.”
Paxson and Mayor Echo Concerns
Councilwoman Kaylynn Paxson added to the criticism, pointing out the gravity of having the company’s top executive involved in such serious legal trouble.
“I recognize it was an individual hired within the company,” she said, “nonetheless, that was a top member of that company. It is disheartening to work with them.”
Mayor Paulette Guajardo assured the council and the public that OVG will be under scrutiny moving forward. “The council will be watching OVG closely due to its CEO’s indictment,” she stated.
Next Steps: August Presentation and Clarity
Assistant City Manager Heather Hurlbert stated that OVG will present a comprehensive update to the council in August in response to mounting concerns. She promised to gather the answers to all of the council’s questions and ensure accountability.
Until then, the city is bracing for a difficult conversation about its future with Oak View Group. With taxpayer money and public trust at stake, city leaders appear ready to seek new management for the event venue.