Consultants working on the California High-Speed Rail project submitted nearly 6,000 pages of expense claims from September 2024 through January 2026, including late-night Lyft rides originating from the CEO Ian Choudri’s residence in Folsom, California.
Denver-based legal-services consultant Brent Butzin of Nossaman LLP and Thierry Prate, a managing director at KPMG, are among the consultants who billed taxpayers for these trips. At least two rides occurred after 1 a.m., with some trips shuttling between the CEO’s home, local Folsom restaurants, bars, and Sacramento hotels. KPMG described one late-night ride as “related to work with Ian,” referring to CEO Choudri.
Inspector General Finds Oversight Failures
The
High-Speed Rail Inspector General’s audit uncovered widespread failures in travel oversight and the documentation of legitimate business purposes for these expenses. Whistleblowers provided expense records after the audit revealed that travel approvals frequently overrode contract travel requirements under pressure from the CEO’s office. Contract managers reported being directed to approve trips despite lacking proper documentation.
Among the records was one Uber Eats delivery to the CEO’s home for $94.39 that was disputed and ultimately not paid by taxpayers. Some invoices indicated meetings at the High-Speed Rail Authority’s Sacramento office, yet receipts showed travel to locations in Folsom including a dozen
rides to CEO Choudri’s residential street and an equal number to nearby dining establishments. The records do not clarify who attended these meetings or events.
Authority Tightens Controls and Revises Policies
The California High-Speed Rail Authority is responding by tightening travel oversight and requiring pre-approval of travel expenses to ensure they fall within contract scope and comply with state regulations. The agency stated, “Only travel that is pre-approved, within contract scope and consistent with state regulations will be eligible for reimbursement.”
KPMG managing director Russ Grote said the firm is reviewing submitted travel expenses and will reimburse the Authority as appropriate. Rail spokesperson Daniela Contreras emphasized
reinforcing travel approval and reimbursement processes to ensure all consultant trips are justified and compliant.
Project Funding and Board Response
The high-speed rail project has spent over $15 billion without laying a mile of track connecting San Francisco and Los Angeles, nearly two decades after voter approval. The project lost $4 billion in federal funding following missed deadlines, and an independent watchdog warns it could exhaust funds by the end of 2027. The updated business plan estimates project costs at $126.3 billion.
Following the Inspector General’s report, the Rail Authority board voted 7-2 to strip CEO Ian Choudri of authority over contracts under $25 million.
Board member Jason Elliott, a former Newsom deputy chief of staff, criticized expenditures saying, “You can’t fly first class when you’re on state travel, you don’t take an Uber black SUV.”
Questions Remain Over Influence and Transparency
CEO Ian Choudri declined to answer questions about the late-night rides. KPMG and consultant Brent Butzin also did not respond to requests for comment. The investigation raised concerns about the influence consultants have on decisions affecting costs and schedules, especially given that Choudri’s wife works for KPMG.
The Inspector General’s report documents internal pressure discouraging contract managers from challenging travel approvals linked to the CEO’s office. Despite evidence of
questionable travel claims, there is no indication of firings or discipline. The findings highlight ongoing accountability and transparency challenges within the multibillion-dollar project.
