California High Speed Rail consultants reportedly charged taxpayers for late-night trips to and from CEO Ian Choudri’s home in Folsom, as well as rides to local bars and restaurants. This information comes amid scrutiny over nearly $600,000 in questionable expenses identified in a recent audit.
Two consultants, Brent Butzin from Nossaman LLP and Thierry Prate from KPMG, were reimbursed for Lyft rides at unusual hours, including one instance after 1 a.m. last September, according to receipts obtained by CBS Sacramento. The consultants made numerous rideshare trips to Choudri's residential area, where he earns an annual salary of $638,943 to oversee the high-speed rail project.
Additionally, another set of rides was associated with visits to local establishments, including the Land Ocean Steak House, which Choudri is known to frequent. The audit by the Inspector General revealed $592,900 in “unallowable” expenses, which included trips to bars and an “escape room,” as well as first-class flight upgrades. The audit has intensified scrutiny on the high-speed rail project, which has faced significant delays and cost overruns, with estimates suggesting total costs could reach $231 billion, although an updated business plan from the rail authority cites a cost of $126.3 billion.
The late-night rides were described in an email from KPMG as “related to work with Ian.” In one instance, a discussion occurred between Butzin and a rail authority staff member regarding the expenses, with Butzin asserting that Choudri had requested his presence. However, a pizza delivery order for $94.39 was rejected for reimbursement.
Choudri and other staff members addressed the findings during a meeting of the rail agency’s Board of Directors. Board members, including allies of Governor Gavin Newsom, expressed frustration over the expenses. Jason Elliott, a former Newsom deputy chief of staff, remarked, “You can’t fly first class when you’re on state travel, you don’t take an Uber black SUV.”
The High Speed Rail Authority did not directly comment on the late-night trips but stated that it is enhancing its internal cost controls. Rail spokesperson Daniela Contreras mentioned that the agency is committed to recovering the misallocated taxpayer funds and is reinforcing its travel approval and reimbursement processes to ensure compliance with state regulations.