Assuming the main reason for his demotion was for manipulating the event, then I say no. Yes, Leo did a good job and I've never had any issues with him nor hold anything against him, but to me it sounds really dumb to pretty much say "Hey we're gonna demote you for corruption, but we'll also reward you with this sweet ELITE group title!" Doesn't matter the severity of the corruption, it's about breaking the trust. Once you lose the trust you have to gain it all back. It'd be different if say they gave him a "slap on the wrist" for this several months ago and he was demoted for a different reason. Then I'd say yeah just let it slide and give him the ELITE, but it just happened recently, resulting in demotion.
And honestly, Leo doesn't need an ELITE title to go down in history as a good GM. Everyone supporting this agrees he did a good job and there's a mutual understanding of that already between him and the players lol.
