Filmmaker’s trial set to begin Monday

Published 7:38 am Monday, February 7, 2011

DES MOINES, Iowa  — Trial for a Minnesota filmmaker charged with misusing tax credits designed to lure filmmakers to Iowa is scheduled to begin Monday in Des Moines.

Wendy Weiner Runge, 45, of St. Louis Park, Minn., is charged with first-degree theft, three counts of fraudulent practice in the first-degree and one count of ongoing criminal conduct. Her trial is the first over allegations that she and other movie makers inflated values on applications for tax credits for the filming of a science-fiction movie “The Scientist.”

The criminal complaint alleges the actions of Runge and the others more than doubled the cost of the program to Iowa taxpayers.

Runge and three other filmmakers — Matthias Saunders, Chase Brandau and Zachary LeBeau — own Minneapolis-based Polynation Pictures and sought tax credits to cover the costs of making the film. Charges against LeBeau were dropped in exchange for his cooperation in the case. Brandau and Saunders each pleaded guilty.

Charges also were filed against former Iowa Film Office manager Thomas Wheeler, another filmmaker, a tax credit broker and the owner of a production company.

The charges followed an investigation into a tax credit program administered by the Iowa Film Office.

The program came under scrutiny after an audit discovered sloppy bookkeeping in the film office and questionable spending by some filmmakers. Then -Gov. Chet Culver suspended the program in September 2009. He later allowed existing applications to be processed but halted any new applications from being filed.

The scandal led to the removal of six people from the Iowa Department of Economic development, including its director and his deputy.

It also became fodder for Republican nominee for governor Terry Branstad in his successful campaign to oust Culver and for his call to restructure the economic development department and replace it with a public-private partnership. Branstad claimed the film office problems were indicative of larger mismanagement in Culver’s administrations. Culver responded that he dealt quickly with the problems and worked to retrieve any misspent money.

Geoff Greenwood, a spokesman for the Iowa attorney general’s office, declined to comment on the upcoming trial. A telephone message left Thursday for Runge’s attorney, Matthew Whitaker, wasn’t immediately returned.

The case is expected to revolve around tax credit applications submitted by Runge and the others that, according to court records, included items that were inflated well above their market value. Items included on invoices included a push broom and hand broom for $225 each, six road cones for $1,350, a metal rake for $225, a pick ax for $225, six step ladders for $900 each, another step ladder for $1,125, an extension ladder for $1,350, a $225 sledgehammer and two shovels totaling $450.

Court records also say duplicate items appeared on multiple invoices and created double-billing.

Under the program, a moviemaker could receive a 25 percent tax credit on payments made to an Iowa individual or business for movie production costs. There was also a 25 percent credit for expenses incurred outside the state but that credit was determined after the amount spent in Iowa was subtracted from the total cost of the movie.

Documents indicate that Wheeler ignored limits on investment tax credits and told filmmakers they could make movies for half the price. Runge and the other filmmakers were awarded more than $1.8 million in tax credits, or about half of the cost of producing their film.

Weiner Runge’s trial is expected to last up to two weeks.