February 11, 2011 Movie costs 'ridiculous,' witness says in film trial By LEE ROOD lrood@dmreg.com

The expenses claimed by a Minnesota filmmaker and her partners to obtain more than $1.85 million of Iowa's once-generous tax credits for filmmaking were "extraordinarily high" and "ridiculous," an expert witness testified Thursday. "People I know who have worked on much larger pictures than I have never received this much money," said Michael Handley, who has owned a camera and grip rental company in Minneapolis for 12 years. He's a camera and lighting expert who has worked on several movies, including "The Mighty Ducks" and "Grumpy Old Men." Handley's comments came on the third day of testimony for the prosecution in the trial of Wendy Weiner Runge, 45, of Minneapolis. The novice filmmaker is accused of fraud and other felonies in the wake of abuse and mismanagement of Iowa's film program, which was suspended in 2009. Deputy Attorney General Thomas H. Miller asked Handley his professional opinion of the rental expenses Runge submitted to the state for credits. One was a $225 broom rental, much discussed through the trial, for Polynation Picture's "The Scientist." "Um ... ouch," Handley said, triggering an eruption of laughter through the courtroom at Drake University's Legal Clinic. Runge has pleaded not guilty to the charges, contending her role in the film was primarily finding investors and a distributor for the film. In a blog entitled "Why Wendy?" she has written that she and her attorney, Matthew Whitaker, have a game plan for winning the case. In the courtroom, Whitaker has tried to cast doubt on witnesses, including his cross-examination of former Polynation partner Chase Brandon for several hours over two days. But several observers in the courtroom, who included the head of Iowa's Motion Picture Association, said Thursday's testimony may have been the most damning so far for a woman who professed to know nothing about expenses. Handley, owner of Tasty Lighting Supply, said he was paid about $15,000 for a three-ton package of lighting and grip equipment rented by Runge's partner, Matthias Saunders. The costs of those items were later greatly exaggerated when reported to Iowa's film office and supplemented by other expenses that Handley did not supply, he said. One of those costs: $2,700 to rent 12 wooden boxes over the course of 45 days. Handley also said expenses claimed for the salaries of cameramen and the film's director of photography were way out of line compared to industry norms. Handley said he knew no one who would charge what Runge and her partners said they did for lighting and grip equipment rental, which is highly competitive. "Budgets are getting smaller and smaller all the time," he said. After the controversy erupted over the abuse of Iowa's film program, 11 film production companies united to sue the state to stop officials from releasing specific expenses they claimed they made to make their films. One of those companies was Polynation Pictures. Runge and her partners also declined to cooperate with a state audit of tax credits awarded. The film companies won their civil lawsuit last year, arguing that such a release would be devastating in such a highly competitive business and that they were guaranteed confidentiality "by contract and by statute." An appeal by the state to Iowa's Court of Appeals is pending. Kent Newman, who has worked on several movies and heads the movie association, said the testimony underscores his belief a judge should have released financial information. Newman said it was apparent creators of "The Scientist' " took advantage of the retooled incentives while they were in their infancy. The Polynation partners, and others who submitted projects early, were able to inflate their budgets under the state's lax management, he said. Those who submitted projects later, after new safeguards and a $50 million cap were put in place, got far less.