California High Speed Rail Authority staffers pledged to claw back misspent taxpayer funds after a state audit exposed nearly $600,000 in improper consultant expenses, including mysterious late-night rides to CEO Ian Choudri’s home and trips to local bars.
Ian Choudri, who earns $638,943 annually to lead the embattled bullet train project, appeared Friday before the rail agency’s Board of Directors alongside other staffers to address the findings. The Inspector General audit scrutinized $2 million in travel expenses from four major contractors: law firm Nossaman LLP, KPMG, AECOM-Flour Joint Venture, and SYSTRA/TYPSA Joint Venture.
Two consultants in particular drew scrutiny for their rideshare habits. Brent Butzin, a Denver-based Nossaman LLP attorney, and Thierry Prate, a KPMG director, billed for roughly two dozen questionable Lyft trips last September, according to receipts Sacramento. A dozen of those rides went to or from a quiet residential road where Choudri owns a home in Folsom. Another dozen connected to bars and restaurants near Land Ocean Steak House, a pricey surf ‘n turf spot where Choudri is known to frequent.
The timing raised eyebrows. One ride came after 1 a.m., and others hit similarly odd hours. KPMG offered a vague explanation in an email, describing the trips as “related to work with Ian.” When a rail authority staffer pushed back on the expenses, Butzin reportedly argued that Choudri himself had requested the lawyer’s presence.
The audit’s scope went well beyond rideshares. Consultants expensed trips to Tiki bars, an escape room, and first-class flight upgrades, all deemed “unallowable” by the Inspector General. The rail authority did reject one claim outright: a $94.39 pizza delivery order.
Board members including Steve Kawa and Jason Elliott, both recently appointed allies of Governor Gavin Newsom, vented frustration during Friday’s session.
“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.
The expense revelations land atop a project already notorious for delays and ballooning costs. One estimate placed the total price tag at $231 billion, though an updated business plan from the rail authority put the figure at $126.3 billion.
Daniela Contreras, a rail authority spokesperson, outlined the agency’s response in an email following the board meeting. “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,” Contreras wrote.
“Only travel that is pre-approved, within contract scope and consistent with state regulations will be eligible for reimbursement,” she added.
The High Speed Rail Authority’s official statement sidestepped the unexplained late-night trips entirely, saying only that the agency is updating its internal cost controls. Staffers at Friday’s meeting made explicit promises to recover the misspent money.
The bullet train project, meant to eventually link Los Angeles and San Francisco at high speed, has struggled for years with political opposition, legal challenges, and engineering hurdles. The latest audit adds a fresh layer of scrutiny to a venture that has become a symbol of ambitious infrastructure dreams colliding with fiscal reality.
The board is scheduled to meet again in Sacramento.