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Attack ad in Indiana senate race draws attention to hot race

We're answering viewer questions about an attack ad claiming corruption and program cuts caused children to suffer.

INDIANAPOLIS — Who will represent Broad Ripple, northern Marion County and parts of Carmel and Fishers in the statehouse?

The fight for State District 30 is a hot race.

Incumbent State Senator John Ruckelshaus is facing off against Faddy Qaddoura, a former financial chief for the city of Indianapolis.

Viewers contacted 13News after an attack ad claiming corruption and program cuts caused children to suffer.

13 Investigates Sandra Chapman dug into the records to sort out the claims.

The ad in question was paid for by "Hoosiers for Ruckelshaus," the campaign committee for the state senator. 

The Ad: "It was a shocking case of political corruption. Fady Qaddoura eliminated preschool funding for 'at risk kids' but gave over a million dollars in city contracts to a consulting firm and then went on their payroll. Corrupt Fady Qaddoura used public office for personal gain, while children suffered."

Viewers had two major questions:

"John Ruckelshaus has an ad that says his opponent engaged in corruption...I couldn't find anything to verify the claims... Could you verify if the Democrat candidate in this race was at any point the subject of a corruption investigation?" Joe asked.

Angie asked:
"The only thing I was able to confirm was that he got the position...Is this ad true or was it construed to sound shady?" said said.

13News first looked at the claim that "Qaddoura eliminated spending for 'at risk kids.'

The ad is talking about the "On My Way Pre-K" pilot program. It started in 2015 by former Republican Mayor Greg Ballard. The idea was to provide pre-kindergarten for 3-year-olds in Marion County for a five-year pilot program. The city of Indianapolis provided millions in funding. (Chalkbeat 8/13/19)

In 2019, Mayor Hogsett announced the funding for the program would end at the end of the 5-year period, which coincided with the end of the school year. (Chalkbeat 8/13/19)

At the same time, the state announced $22 million in funding for a preschool voucher program for 4-year-olds. It's open and Indiana's Family and Social Services Administration is accepting applications today. (IndyStar 10/7/2020)

So where does Fady Qaddoura come in?

He was the city controller last year. His job was to pay the city's bills and maintain a balanced budget. But Qaddoura had no authority to end preschool for 3-year-olds on his own. Mayor Hogsett has stated in news reports that it was his decision with the backing of the City County Council.  

So what about Fady Qaddoura's new job?

For this claim,13News started with a company known as KSMC. The City of Indianapolis has had contracts with the business since 2016 to support city agencies.

A review shows Qaddoura signed off on five of 10 contracts between December 2017 and November 2019.  

The last contract he signed was an extension amendment on Nov. 26, 2019.  It had no added value.

It's important because Qaddoura announced two weeks later he would be leaving city employment at year's end. Two remaining contracts with KSMC were signed by other staff.

Then on Jan. 8, 2020, KSMC's co-parent company, Katz Sapper and Miller announced it had hired Qadourra in a different role. It's important to note in early 2019 that Katz Sapper and Miller sold majority interest in KSMC.

Three months later, the city's new controller signed a $1 million contract with KSMC. That contract was valued at more than the contracts Qaddoura signed during the time period in question.

The Ruckelshaus campaign thinks it's all too close for comfort and said state level employees would likely be subject to a cooling off period and/or getting an opinion from the Inspector General.

Under the City's Ethics Code: a "former employee may not represent or assist matters involving city or county if...(they) participated in solicitation, negotiation, awarding or performance" of a contract.. for 1-year following employment with the city. (Sec. 293-207. - Post-employment restrictions)

13News learned Qaddoura did not seek any waivers for his new position.  At Katz Sapper and Miller, he is the chief innovation officer, a newly created position to manage the process of innovation and change within the company.  That's different from being a chief financial officer. 

Despite the optics, the City's Office of Corporation Council said no ethics complaint has been filed against Qaddoura and there is no case of public corruption.

The ad ran for just six days before it was removed from local network affiliates. The Ruckelshaus campaign told 13News the ad had run its course.  13News also spoke with Qaddoura's campaign and they said the allegations are false, and they have not launched any attack ads.

Statement from Fady Qaddoura campaign:

"Over the last week, Hoosier voters have expressed outrage and are appalled by the onslaught of defamatory attacks State Senator John Ruckelshaus has made against the character and integrity of Fady Qaddoura. The lies against Fady are false and beneath the character of someone who claims to be a "voice of reason", and in fact, Ruckelshaus is subscribing to the low-barrel tactics often used by President Trump and the national Republican Party -- which has no place in Indiana politics. These malicious attempts to defame Fady show just how desperate Senator Ruckelshaus has become to keep his position of power."

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