Wheeler: I made mistakes, but none were criminal

Former Film Office director again takes stand in his own defense

by Rod Boshart/Cedar Rapids Gazette

Former Iowa Film Office manager Thomas Wheeler admitted Tuesday that he made mistakes overseeing the state’s film tax-credit program, but none were done with criminal intent or to help others commit fraud.

During his second day of testifying in his own defense at his criminal trial, Wheeler said the missteps in administering what had become the nation’s most lucrative film incentive largely were rooted in:

• The new incentive law’s many ambiguities.
• A number of evolving interpretations being made by state tax and economic development officials over what expenses and in-kind services were eligible for investors and producers seeking transferrable state tax credits.

The former state employee said the “tsunami wave” of contacts that flooded his office once Iowa began providing a 25 percent tax credit for production expenditures made in Iowa, plus a 25 percent tax credit for investors for projects that spent at least $100,000 in Iowa coincided with other challenges that engulfed the state Department of Economic Development. Those challenges included the state’s worst flooding disaster, the national recession and state budget cuts that all stretched DED resources thin.

Wheeler, 42, of Indianola, is being tried in Polk County District Court on charges of felony misconduct in office, first-degree fraudulent practices, and conspiracy for his role as film office manager from 2004 until September 2009 when an unfolding scandal triggered by the purchase of luxury vehicles deemed eligible for tax credits prompted former Gov. Chet Culver to suspend the program. He has pleaded not guilty to all the criminal charges filed against him.

Wheeler and five other people lost their jobs in the economic development agency when an internal audit raised concerns about lax oversight, inadequate documentation of expenditures, payments for questionable in-kind services, and credits that had been issued for the purchase of luxury vehicles that were later taken to California for personal use.

Wheeler said throughout his time at the film office he followed the law to the best of his ability even though the details were murky at times and “the variables were literally infinite.” He said his firing was unexpected. “When I was charged, it was a surprise,” he said.

Under questioning by his defense attorney, Angela Campbell, about mistake he made, Wheeler said: “That’s why we’re here in part, I made a lot of mistakes.”

Asked by Campbell: “Did you ever intend to make a mistake that would cause people to be able to commit fraud?”

“Absolutely not,” Wheeler replied.

State prosecutors were expected to begin their cross examination of Wheeler on Tuesday, and the jury of nine women and three men was expected to get the case later this week.