Film producer enters plea deal in film tax-credit scandal

An Iowa film producer from Washington has agreed to plead guilty to an aggravated misdemeanor in exchange for prosecutors dropping other criminal charges against him stemming from the Iowa Film Office scandal involving the issuance of state tax credits.

Iowa Attorney General Tom Miller announced Friday that Bruce Elgin, 42, of Washington, entered into an agreement whereby he pleaded guilty in Polk County District Court to a charge of tampering with records, an aggravated misdemeanor. As part of the plea deal, Miller agreed to drop all other charges against Elgin, including felony counts of ongoing criminal conduct, two counts of first-degree theft and two counts of first-degree fraudulent practice, according to a news release issued by the Iowa Attorney General's Office.

Also, Elgin agreed to cooperate with the ongoing investigation and prosecutions related to the Iowa Film Office and the state's former film tax credit program.

A sentencing date for Elgin has not been set. Under Iowa law, an aggravated misdemeanor conviction carries a penalty of up to two years in prison and a maximum fine of $6,250.

Elgin, who was previously charged as Bruce Heppner-Elgin, is co-owner of Iowa Film Production Services and was a producer of the film “Splatter” and a writer, director and producer of the film “The Offering.” According to a 2010 special investigation by State Auditor David Vaudt, Heppner's Iowa Film Production Services claimed tax credits for more than $7.8 million in non-qualifying expenses -- including $1.3 million for which the auditor found no proof of payment.

Previously, Chase Brandau, Matthias Saunders, and Wendy Weiner Runge entered into separate plea agreements connected with the company Polynation Pictures and the production of the film “The Scientist.” Miller agreed to drop charges against Zachary LeBeau, who was also charged in connection with “The Scientist,” in exchange for his cooperation in Iowa Film Office and Iowa film tax credit-related investigations and prosecutions.

After the scandal broke in September 2009, six people lost their jobs within the state Department of Economic Development, including its director, deputy director and former Iowa Film Office director Thomas Wheeler, 42, of Indianola, who is scheduled to go on trial Aug. 15 in Polk County District Court on felony charges of felonious misconduct in office, first-degree fraudulent practice and conspiracy.

Independent auditors found that record-keeping in the program was minimal and some expenditures were questionable, including luxury vehicles. Former Gov. Chet Culver suspended the tax credit program in September 2009.

Other defendants in the film tax-credit scandal facing upcoming trials include Dennis Brouse, 60, of Plattsmouth, Neb., owner of Changing Horses Productions; Chad Witter, 38, of Bettendorf, a tax credit broker; and Harel Goldstein, 50, of Calabasas, Calif., a movie distributor and producer of the film “Underground.”