California High-Speed Rail Consultants Accused of Misusing Taxpayer Funds for Personal Trips

Consultants for the California High Speed Rail project are under scrutiny following a recent audit that uncovered nearly $600,000 in questionable expenses, including late-night rides billed to taxpayer funds. Reports indicate that two consultants, Brent Butzin, an attorney with Denver-based Nossaman LLP, and Thierry Prate, a director at KPMG, submitted receipts for Lyft rides that took them to and from the Folsom home of CEO Ian Choudri, even after 1 a.m. in the morning.

These rides, along with a dozen others linked to bars and restaurants in Folsom, were part of a larger audit by the Inspector General. The audit examined $2 million in travel expenses from four major contractors: Nossaman LLP, KPMG, AECOM-Flour Joint Venture, and SYSTRA/TYPSA Joint Venture. The total in identified "unallowable" expenses reached $592,900, encompassing items such as first-class flight upgrades and trips to entertainment venues.

Choudri, who earns $638,943 annually, was reportedly the destination for a dozen rideshare trips. Another dozen rides were associated with local Folsom establishments, including the Land Ocean Steak House, a restaurant Choudri is known to frequent. KPMG explained the late-night trips vaguely as "related to work with Ian."

In one instance, Butzin reportedly justified his expenses by stating Choudri had requested his presence. The rail authority did reject a $94.39 pizza delivery reimbursement request.

During a meeting of the rail agency's Board of Directors, where Choudri and other staff addressed the audit's findings, board members expressed frustration. Board member Jason Elliott, a former Newsom deputy chief of staff, stated that consultants should not be flying first class or using premium car services on state travel.

The California High-Speed Rail Authority acknowledged the concerns, with spokesperson Daniela Contreras stating the agency is reinforcing its travel approval and reimbursement processes. "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 said. "Only travel that is pre‑approved, within contract scope and consistent with state regulations will be eligible for reimbursement."

The revelations come as the multibillion-dollar high-speed rail project continues to face challenges with delays and cost overruns. While an earlier estimate placed the total cost at $231 billion, an updated business plan from the rail authority suggests a cost of $126.3 billion.