It is indisputable in my mind. However, it seems like ESPN really wants Te'o to win.
He did get arrested, but it wasn't for breaking up the fight between a teammate and another guy the Fake ID he gave the cops is what got him...He was arrested back in June or July, and having an arrest record isn't part of the "heisman character", but they allowed Cam Newton and Reggie Bush to get it, so I don't think his criminal record matters...