California High Speed Rail bigwigs reportedly billed taxpayers for unexplained late-night trips to and from CEO Ian Choudri’s Folsom home, along with rides to local bars and restaurants — as reps face tough questions about nearly $600,000 in blown expenses revealed in a recent audit.
Two rail consultants, Denver-based Nossaman LLP attorney Brent Butzin and KPMG director Thierry Prate, were reimbursed for Lyft rides at odd hours last September, even after 1 a.m in the morning in one instance, according to receipts obtained by CBS Sacramento.
The two highly-paid consultants were responsible for a dozen rideshare trips to or from a quiet residential road where Choudri, who nets $638,943 in annual comp to run the troubled bullet train project, owns a home.
Another dozen rides were linked to bars or restaurants in Folsom near a pricey surf ‘n turf joint, Land Ocean Steak House, that Choudri is known to frequent, per CBS.
The receipts were part of a bombshell Inspector General audit that found $592,900 in “unallowable” expenses incurred by consultants, including rideshare trips to Tiki bars and an “escape room” and first-class flight upgrades.
The revelations added fresh scrutiny to the multibillion-dollar bullet train project that’s been bogged down by lengthy delays and massive cost overruns, with one estimate pegging the total cost at $231 billion.
An updated business plan from the rail authority estimated the cost at $126.3 billion.
The late-night rides identified by CBS were vaguely explained as “related to work with Ian,” according to a email from KPMG.
In one case, a back-and-forth ensued between Butzin and a rail authority staffer who questioned the expenses, with the lawyer reportedly arguing that Choudri requested his presence.
The rail authority did, however, reject one $94.39 pizza delivery order that was sent for reimbursement.
Choudri, along with other staffers, appeared at a Friday meeting of the rail agency’s Board of Directors to discuss the findings in the inspector general’s audit, which examined $2 million in travel expenses from four major contractors: Law firm Nossaman LLP, KPMG, AECOM-Flour Joint Venture and SYSTRA/TYPSA Joint Venture.
Members of the board — including recently appointed Gavin Newsom allies Steve Kawa and Jason Elliott — voiced exasperation with the blown expenses.
“You can’t fly first class when you’re on state travel, you don’t take an Uber black SUV,” said Elliott, a former Newsom deputy chief of staff.
A statement from the High Speed Rail Authority didn’t directly address the unexplained trips, but claimed the agency is updating its internal cost controls.
Staffers at the Friday meeting vowed to recover the misspent taxpayer money.
“As an agency entrusted with stewarding public resources, the Authority is reinforcing its travel approval and reimbursement processes to ensure every consultant trip is appropriate, justified and fully compliant with state policy,” rail spokesperson Daniela Contreras said in an email.
“Only travel that is pre‑approved, within contract scope and consistent with state regulations will be eligible for reimbursement,” Contreras said.
