The Lead Off
- State records show a $90,000 payment from Indiana’s Securities Restitution Fund to a software contractor tied to a broader modernization contract.
- Separate records indicate $493,359 in annualized salary increases were approved for 79 Secretary of State employees in August 2025.
- The Secretary of State’s office says both actions followed compensation benchmarks and allowable fund uses under state guidelines.
INDIANAPOLIS, IND. (WOWO) Newly obtained state records show the Indiana Secretary of State’s office approved a $90,000 payment from a victims restitution fund to a software contractor and later authorized nearly half a million dollars in staff raises, raising new questions about agency spending practices and contract management.
Restitution fund payment to vendor
Records obtained by the Indiana Capital Chronicle show the Secretary of State’s office on May 6 paid $90,000 to Maverick Quantum Inc., an artificial intelligence and software company, using Indiana’s Securities Restitution Fund.
The fund is intended to compensate victims of securities fraud and related violations. State records reviewed by the Capital Chronicle indicate the payment is the only vendor disbursement made from the fund since at least 2020. During that same period, the fund primarily issued payments to individual claimants.
The office said the payment was tied to a broader technology modernization project for the Securities Division.
Indiana Securities Restitution Fund payments typically go to claimants. In fiscal year 2025, more than two dozen claim payments totaling about $253,000 were issued. In fiscal year 2026 so far, four claims totaling roughly $39,000 have been paid, along with the $90,000 vendor payment.
Contract expansion and technology project
The $90,000 payment followed a contract amendment expanding an existing agreement with Maverick Quantum. The original no-bid contract, signed Jan. 31, 2025, carried a maximum value of $1.15 million. A later amendment added about $1.368 million to the agreement’s total potential value.
A 90-page statement of work referenced “restitution fund” as one of multiple workflows included in a broader modernization effort covering document migration, search tools and artificial intelligence services.
Office spokesperson Lindsey Eaton said the restitution fund payment represented “approximately 4% of the IT development cost and platform license” tied to the overall project.
She added, “The office determined that subject to sufficient availability of funds to pay claims, it would be fiscally appropriate and allowable to allocate operational expenses … across related department funds.”
State records show Maverick Quantum has received $1.1 million in fiscal year 2025 and $340,000 so far in fiscal year 2026.
Salary increases following budget discussions
Separate records from the State Budget Agency show the Secretary of State’s office approved $493,359 in annualized salary increases across 79 employees in August 2025, about two months after lawmakers questioned agency spending during a State Budget Committee hearing.
Most employees received 6% raises, while others received increases ranging from 12% to more than 20%. Two senior staff members received promotion-related increases of 27.3% and 28%.
The office said total payroll after the increases reached $6,196,414.
The raises followed a June 2025 letter from Morales to lawmakers outlining planned cost controls, including hiring limits and proposed spending reductions.
During the same budget cycle, the office told lawmakers it expected “virtually flat staffing levels” and identified more than $2 million in planned spending reductions.
Office defense of compensation and spending decisions
The Secretary of State’s office said salary adjustments were based on state compensation studies, performance evaluations and available agency reserves.
“The office believes its salaries are compatible and consistent with the state enterprise and other agencies with comparable responsibilities,” spokesperson Lindsey Eaton said.
Budget officials also noted the Securities Restitution Fund currently holds a cash balance of $927,799, though about $800,001 is available for use following a prior budget augmentation.
Chief Legal Counsel Jerry Bonnet said, “Basically, we have … about enough to pay the number of claims we historically receive in four to five years’ time, not counting additional revenue that accumulates in the fund.”
Contracting authority and transparency framework
The Maverick Quantum contract was awarded without competitive bidding. State law generally requires approval of certain contracts by multiple state officials, though the Secretary of State’s office says its constitutional status provides separate contracting authority.
Indiana lawmakers passed Senate Enrolled Act 5 in 2025 requiring broader posting of contracting opportunities and increased transparency, though the Secretary of State’s office does not currently use the state’s centralized transparency portal for posting contracts.
Donor contributions and procurement scrutiny
Campaign finance records show Maverick Quantum CEO Vamshi Vaddiraja has donated $75,000 to Indiana political campaigns since 2024, including contributions to Morales’ campaign committee and Gov. Mike Braun’s campaign.
The company’s contract was initially awarded without competitive bidding, and state records show additional scrutiny has been placed on procurement practices involving no-bid agreements in recent legislative sessions.
Next steps in oversight and budget cycle
Further review of the Securities Restitution Fund spending and contract structure is expected as part of ongoing legislative oversight and future budget discussions. Additional appropriations requests from the Secretary of State’s office for fiscal year 2027 are currently under consideration by state budget officials.
The Takeaway
Vendor payment from restitution fund prompts questions about fund usage structure
State records show a $90,000 payment from Indiana’s Securities Restitution Fund went to a software vendor tied to a modernization project, a departure from the fund’s typical use for direct claimant reimbursements. The office says the payment was part of broader system development costs.
Salary increases approved months after budget scrutiny hearing
Nearly $493,000 in annualized raises were approved for 79 employees following legislative questioning of agency spending. The office attributes the increases to compensation benchmarks, performance evaluations and available reserves.
Contract expansion and transparency rules remain under review
The Maverick Quantum agreement was expanded by more than $1.3 million and awarded without competitive bidding. While new transparency requirements have been enacted, the office’s contracting practices and reporting methods continue to differ from other state agencies.
