Three more out in wake of film tax credit scandal

DES MOINES – Three more officials are out of a job at the Iowa Department of Economic Development in the wake of the film tax credit scandal.

Department spokeswoman Kay Snyder confirmed the three were no longer working at the agency as of Monday.

Those employees are Jeff Rossate, division administrator for business development, Amy Johnson, division coordinator for business development and the department's general counsel, Melanie Johnson. Amy Johnson had been named interim manager of the beleaguered Iowa Film Office in September.

Snyder would not divulge details of the employees' departure, including whether they were dismissed or resigned.

“Those are confidential personnel matters, and I just can't discuss them,” Snyder said.

The department's business development division oversees the Iowa Film Office, which has seen turmoil in recent months. Gov. Chet Culver suspended the office's film tax credit program last year after revelations tax credits were used in the purchase of luxury vehicles.

The scandal already has claimed the jobs of former economic development director Mike Tramontina and former deputy director Vince Lintz, as well as former Iowa Film Office manager Thomas Wheeler.

Wheeler is facing a charge of non-felonious misconduct in office.

In a recent court filing, Wheeler claims the Iowa Attorney General's Office has a conflict of interest while prosecuting him and defending the state in a film tax credit lawsuit at the same time.

Iowa Eye Entertainment sued the economic development department after the state's film tax credit program was suspended and sought a court order to force the state to issue tax credits for their film “Clean Out.”

The Iowa Attorney General's Office is defending the state in that lawsuit.

A motion filed by Angela Campbell, attorney for Wheeler, seeks to have both the Iowa Attorney General's Office and the Polk County Attorney disqualified from serving on Wheeler's criminal case.

That motion lays out several potential witnesses that could be called in Wheeler's defense who were or are still employed with the economic development department.

Those witnesses, the motion said, are currently represented or formerly represented by the attorney general's office and at least some of them likely have had privileged attorney-client conversations with the attorney general's office, which provides legal advice to other state agencies.

The defense motion questions how the attorney general's office can be a part of prosecuting Wheeler.

“What the Attorney General is seeking to do in this case sets a very dangerous and chilling precedent on the ability of state employees to seek legal opinions from their legal representative without fear of criminal recourse,” the motion said. “It cannot and should not be tolerated in this case or in any other case where the Attorney General seeks to criminally accuse former or current clients of its office.”

The defense also is asking to stay all proceedings in the case while the motion to disqualify is considered.

In an interview, Iowa Attorney General Tom Miller said they dispute the idea of a conflict of interest and will respond in court.

“If their theory is right, it would mean, or probably mean, that we could never prosecute a state employee,” Miller said.

Court documents allege that practices in the Iowa Film Office under Wheeler's direction made the program vulnerable to fraud. Prosecutors contend Wheeler failed to conduct a meaningful review of financial documents filed for tax credit reimbursements.

But Wheeler's brother, David Wheeler, has said he was a junior employee in the department who was overwhelmed and may have taken on too much work, but was not a criminal.

Two filmmakers from Minnesota have been charged with

first-degree theft in the case. Prosecutors allege they falsified and exaggerated expenditure claims to receive tax credits.