A federal grand jury has indicted Aubrey McClendon on charges of conspiring to rig bids for oil and natural gas leases in northwest Oklahoma, the U.S. Department of Justice said Tuesday.



The indictment claims McClendon, 56, led a conspiracy between two large oil and natural gas companies, which agreed to not bid against each other for leases. The companies agreed which would win the leases, and the winner would give an interest in the leases to the other company, the indictment claimed.



McClendon denied the claims Tuesday.



"The charge that has been filed against me today is wrong and unprecedented," McClendon said in a statement. "I have been singled out as the only person in the oil and gas industry in over 110 years since the Sherman Act became law to have been accused of this crime in relation to joint bidding on leasehold.



"Anyone who knows me, my business record and the industry in which I have worked for 35 years, knows that I could not be guilty of violating any antitrust laws. All my life I have worked to create jobs in Oklahoma, grow its economy, and to provide abundant and affordable energy to all Americans. I am proud of my track record in this industry, and I will fight to prove my innocence and to clear my name."



Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals.



The indictment does not name the Oklahoma City-based companies involved in the conspiracy, but it says the events took place from December 2007 to March 2012, while McClendon was CEO of Oklahoma City-based Chesapeake Energy Corp.



“Chesapeake has been actively cooperating for some time with a criminal antitrust investigation by the Department of Justice regarding past land leasing practices and has received conditional leniency under the Antitrust Division’s Leniency Program," Chesapeake spokesman Gordon Pennoyer said. "Chesapeake does not expect to face criminal prosecution or fines relating to this matter. Chesapeake has taken significant steps to address legacy issues and enhance legal and regulatory compliance throughout the organization.”



Under the Justice Department's "first in the door" policy, only the first qualifying corporation may be granted leniency for a particular antitrust conspiracy.



The indictment, which was filed Tuesday in U.S. District Court in Oklahoma City, claimed the conspiracy suppressed prices paid to leaseholders in northwest Oklahoma.



“His actions put company profits ahead of the interests of leaseholders entitled to competitive bids for oil and gas rights on their land," Assistant Attorney General Bill Baer, of the Justice Department’s Antitrust Division, said in a statement.



"Executives who abuse their positions as leaders of major corporations to organize criminal activity must be held accountable for their actions.”



McClendon's attorney said McClendon used legal, well-known business practices.



"In response to criticism of their past charging practices and in the name of a new policy to be tough on individuals, the prosecutors have wrongfully singled out Aubrey McClendon and have wrongly charged an innocent man," Abbe Lowell of Chadbourne & Parke and Emmet Flood of Williams & Connolly said in a statement. "A charge is one thing. Proving the case is another. Starting today, Aubrey gets his day in court where we will show that this prosecutorial overreach was completely unjustified."



Tuesday's indictment is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anti-competitive conduct in the oil and natural gas industry, the Justice Department said.



“The FBI is committed to investigating individuals who engage in corrupt criminal conduct,” Special Agent in Charge Scott L. Cruse of the FBI’s Oklahoma City Division said in a statement. “We will continue to work with the DOJ Antitrust Division to target those who devise schemes which create an unfair competitive advantage by way of bid rigging or other illegal means.”



McClendon co-founded Chesapeake and served as its CEO until he was ousted from the company in April 2013 following a shareholder revolt. While at Chesapeake, McClendon led the company to become the most active driller and largest natural gas producer in the country. The company acquired leases in most of the country's major oil and natural gas fields.



After leaving Chesapeake, McClendon co-founded American Energy Partners LP, where he has developed oil and natural gas production throughout the country as well as in Argentina, Australia and Mexico.



McClendon also is part owner of the Oklahoma City Thunder and Pops restaurant and owns real estate throughout the Oklahoma City area.



The U.S. Justice Department and Michigan authorities in 2014 investigated McClendon and Chesapeake for possible antitrust violations in connection with the alleged big rigging of Michigan oil and natural gas leases. The Justice Department closed its investigation without indictment.



Chesapeake last year agreed to settle up a $25 million compensation fund as part of a settlement with Michigan.



CONTRIBUTING: Staff Writer Nolan Clay and Business Writer Paul Monies