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Well aft acheronian 1 nighttime past September, a highly paid advisor for the California High-Speed Rail Authority expensed a Lyft thrust that pulled up extracurricular the bureau CEO's location successful Folsom, California.
Just earlier midnight, different highly paid advisor expensed a Lyft thrust from the aforesaid location backmost to his Sacramento hotel.
The archetypal was Denver lawyer Brent Butzin, who CBS California has independently confirmed is the legal-services advisor referenced successful the High-Speed Rail inspector general's caller investigation. The 2nd was Thierry Prate, a managing manager astatine KPMG, the fiscal advisor examined successful the aforesaid report.
Both submitted the rides arsenic expenses associated with California's multibillion-dollar high-speed obstruction project.
And it wasn't the lone late-night thrust from the High-Speed Rail CEO's home.
Why were taxpayers billed for late-night rides from the CEO's home?
After California's autarkic High-Speed Rail inspector wide recovered wide failures successful advisor question oversight, whistleblowers provided CBS California Investigates with immoderate of the underlying disbursal records.
We reviewed astir 6,000 pages of invoices and disbursal claims that KPMG and the instrumentality steadfast Nossaman submitted to the authorization for enactment from September 2024 done January 2026.
Among the receipts from 2 consultants, Prate and Butzin, we recovered a twelve rides to oregon from the tiny residential thoroughfare successful Folsom wherever High-Speed Rail CEO Ian Choudri owns a home.
Another twelve rides went to oregon from adjacent Folsom restaurants and bars.
Many rides progressive late-night oregon early-morning pickups, including 2 aft 1 a.m.
The receipts don't found who attended the gatherings, what concern took place, oregon whether Choudri was present. His woman besides works for KPMG.
But the receipts uncover antecedently undisclosed connections betwixt consultants' question expenses and the CEO's backstage residence.
And they rise questions astir who authorized those rides.
What authorities concern justified trips to and from the CEO's backstage residence and adjacent restaurants, sometimes aft midnight?
And what power bash these highly paid consultants person implicit the decisions driving the project's costs and schedule?
The questions travel arsenic California's high-speed obstruction task continues to walk billions, astir 2 decades aft voters approved a slug bid connecting San Francisco and Los Angeles.
The authorities has spent much than $15 billion, but still hasn't laid a mile of high-speed obstruction track. It recently lost $4 cardinal successful national funding aft missing cardinal deadlines, and its independent watchdog warns it could tally retired of wealth by the extremity of 2027.
Meanwhile, the authorization said it is paying just 4 consulting contractors much than a 4th of a cardinal dollars implicit 2 fiscal years.
Sources wrong the High-Speed Rail Authority accidental the inspector general's findings constituent to thing overmuch bigger than questionable question expenses.
Who holds power implicit this multibillion-dollar nationalist project? Who makes the decisions? And who's accountable erstwhile those decisions outgo taxpayers money?
CEO declines to reply questions astir late-night rides
CBS California published its probe hours earlier Friday's peculiar committee gathering to sermon the Inspector General's investigation. After the meeting, investigative analogous Julie Watts asked High-Speed Rail CEO Ian Choudri astir the late-night rides from his home.
Choudri walked distant without answering. The authority's caput of communications told CBS California that Choudri would not reply questions and directed reporters to email questions to his office.
CBS California had antecedently submitted elaborate written questions to his bureau asking astir the disbursal records. The authorization provided a wide effect outlining changes to question oversight but did not straight reply questions astir the rides.
In an email, the High-Speed Rail Authority said it is tightening question oversight, updating reimbursement rules and requiring caller grooming for consultants and declaration managers earlier approving further question expenses.
"Only question that is pre-approved, wrong declaration scope and accordant with authorities regulations volition beryllium eligible for reimbursement," the Authority said.
In a effect to CBS California, KPMG said it is reviewing the question expenses and volition reimburse the Authority arsenic appropriate.
"KPMG takes earnestly its obligations regarding the close submission of expenses and KPMG professionals are expected to beryllium liable stewards of lawsuit and steadfast resources, said Russ Grote, Managing Director of Corporate Affairs.
CBS California besides sent elaborate questions to High-Speed Rail CEO Ian Choudri, Denver lawyer Brent Butzin and KPMG managing manager Thierry Prate.
None of the 3 responded to requests for comment.
Although committee members had reviewed the investigation, nary publically pressed Choudri astir the late-night rides oregon the IG's study during the meeting.
When Watts asked the committee seat wherefore helium hadn't questioned Choudri astir the findings, helium did not straight answer. But erstwhile asked whether the CEO should talk with California reporters representing taxpayers, the seat said, "Yes," adding, "I judge successful communication."
The CEO wouldn't reply our questions. The committee didn't inquire them.
The receipts uncover wherefore those questions matter, and 1 interior email connects a late-night thrust straight to enactment with Choudri.
'Related to enactment with Ian'
When the High-Speed Rail Authority questioned KPMG, the steadfast described 1 of Prate's rides to the CEO's residence arsenic "related to enactment with Ian."
On that evening, Prate's Lyft arrived astatine the Folsom location soon aft 7:30 p.m. His adjacent documented thrust departed the aforesaid code aft 1 a.m.
A late-night concern gathering isn't needfully inappropriate. Neither is visiting an executive's home.
But the records don't explicate what circumstantial enactment required repeated rides to the CEO's residence, who was determination oregon however the authorization determined the proscription was an due concern expense.
Those details substance due to the fact that California's question rules necessitate much than a receipt. They necessitate a morganatic concern purpose.
And the inspector wide recovered that the High-Speed Rail Authority repeatedly failed to papers whether advisor question met that standard.
A pizza delivery. Another late-night ride.
Prate's receipts besides papers a nutrient transportation to the aforesaid residence.
One January evening, soon aft 9:30 p.m., an Uber Eats operator delivered a $94.39 bid from a Folsom pizza edifice to Choudri's home, charged to Prate's KPMG firm card
The High-Speed Rail Authority disputed the nutrient delivery, and records amusement the advisor accepted the dispute. Taxpayers yet didn't wage for the pizza. They did wage for Prate's thrust home.
The receipts besides don't place who ate the nutrient oregon who was astatine the house. But they reenforce the cardinal question astir the question expenses.
What authorities concern justifies repeatedly charging the task for proscription to and from the CEO's backstage home?
The paperwork says Sacramento. The receipts amusement Folsom.
The CEO's location wasn't the lone Folsom destination.
Other question records amusement consultants often taking rides betwixt their Sacramento hotels and restaurants and bars adjacent the CEO's home, astir 30 minutes away.
All of the destinations were successful the aforesaid buying halfway arsenic the Land Ocean Steak House that the CEO frequents, according to aggregate sources.
Some rides backmost to Sacramento began aft midnight.
Butzin's disbursal paperwork reveals different evident discrepancy.
Five question forms described the intent of his trips arsenic "Meetings astatine CHSRA successful Sacramento." But attached receipts papers question to restaurants and different locations successful Folsom.
The forms didn't place those destinations. Their business-entertainment sections were blank.
None of that establishes that the edifice visits were personal, oregon that each disbursal required a abstracted amusement disclosure.
But the paperwork doesn't explicate wherefore the consultants repeatedly traveled to Folsom portion billing expenses associated with meetings successful Sacramento.
The discrepancies besides rise questions astir what the High-Speed Rail Authority reviewed earlier approving the payment.
If the question forms didn't place wherever the consultants really went, however did the authorities find whether the expenses were legitimate?
The Washington connection
The receipts uncover different late-night destination, this clip crossed the country.
In May 2025, Prate and Butzin some billed question to Washington, D.C., during the High Speed Rail 2025 conference, wherever Choudri was scheduled to talk connected May 14, according to the league agenda.
Just earlier 1 a.m. that morning, Prate expensed the archetypal of 2 Lyft rides totaling astir $60 from Shelly's Back Room, a Washington cigar lounge, to the Mayflower Hotel and backmost to the cigar lounge conscionable earlier 1:30 a.m.
The records don't bespeak who other was there.
Butzin's records rise a antithetic question.
He billed much than $1300 for a May 13-16 travel to "Attend USHSR Annual Conference and Meetings with CHSRA/Industry Suppliers." The records see nary receipts.
"Learning the hard way"
The inspector general's study revealed however requests from the CEO's bureau influenced question approvals.
When a declaration manager reminded a Denver-based ineligible advisor that helium needed to explicate his trips and get beforehand written approval, the advisor pushed back.
We present cognize the advisor was Butzin.
According to the email excerpt successful the inspector general's report, Butzin argued that justifying question wasn't his work erstwhile the CEO requested his presence.
Then came a perceived warning.
Butzin added that questioning the CEO's absorption was inappropriate, "as different consultants successful different Authority offices are learning the hard way."
The declaration manager told investigators she was directed, chiefly by the acting main counsel, to o.k. question expenses due to the fact that the CEO had requested the trips.
The inspector wide concluded that the CEO didn't person authorization to override the authorities contract's question requirements.
The study documents unit surrounding question approvals. It doesn't found that anyone was fired oregon explicitly threatened with termination.
But sources wrong the High-Speed Rail Authority accidental the concerns widen beyond advisor travel.
They picture a workplace wherever immoderate consultants are perceived arsenic having antithetic power due to the fact that of their relationships with leadership, raising questions astir whether employees consciousness empowered to situation spending and different decisions.
The watchdog's findings supply documented examples of the hostility betwixt enforcement requests and the employees liable for enforcing declaration rules.
Expensive travel. Little beforehand scrutiny.
The inspector general's findings are particularly important erstwhile compared with Butzin's question records.
The High-Speed Rail Authority besides paid the Denver-based advisor astir $86,500 successful hourly question pay, totaling implicit a 4th of a cardinal dollars erstwhile combined with reimbursed expenses.
Separate receipts CBS California obtained papers costly flights and edifice stays, including 1 airfare of astir $937 for a formation from Denver to Sacramento and 1 edifice nighttime costing $587.
The disbursal records see hose tickets purchased soon earlier departure. The inspector wide recovered that Butzin often booked flights connected the time of travel, creating a hazard of higher costs.
Last-minute flights aren't needfully wasteful. Executives sometimes docket meetings with small notice, requiring consultants to question connected abbreviated notice.
But last-minute bookings tin besides outgo importantly more.
The watchdog's findings rise a straightforward question.
If the authorization didn't papers wherefore the question was indispensable oregon o.k. it successful advance, however could it guarantee taxpayers weren't paying much than they needed to?
Other emails amusement however rapidly immoderate executive-related requests were approved.
In 1 exchange, Prate told the authorization that Choudri had requested that helium travel him connected a travel opening the pursuing day.
The petition went to High-Speed Rail's main fiscal officer.
Approval came 5 minutes later.
That doesn't found that the question was unnecessary.
But it shows however straight a petition invoking the CEO could power the support process.
A 4th of a cardinal dollars successful advisor payments. Who's watching?
The High-Speed Rail Authority prepared a presumption to respond to the Inspector General's probe at Friday's committee meeting.
The archetypal version, uploaded aboriginal successful the week, emphasized however small it spent connected question compared with its full advisor payments. The pie illustration further highlights the standard of advisor spending.
Over conscionable 2 fiscal years, the Authority paid 4 consulting contractors much than a 4th of a cardinal dollars. Only astir $2 cardinal was for travel.
The inspector wide reviewed astir fractional of that and recovered much than fractional was unallowable nether authorities rules oregon declaration terms.
According to whistleblowers, this points to a overmuch bigger concern:
If the authorization couldn't enforce basal travel-spending rules, who is overseeing the remainder of the quarter-billion dollars?
But that slide was missing from the presentation the authorization yet gave the board.
The revised mentation nary longer discloses the full payments to those contractors.
In an email, a spokesperson said, "The accusation was streamlined to support the absorption wide for the Board and the public.
What are taxpayers getting for the money?
Since Ian Choudri became CEO successful 2024, California's high-speed obstruction task has fallen further behind, adjacent arsenic the authorization pays 4 large consulting contractors much than a 4th of a cardinal dollars implicit 2 fiscal years.
And that wealth isn't for laying track.
These are consultants. They're paid to supply ineligible advice, fiscal guidance, programme absorption and engineering design. Their enactment helps signifier the decisions astir what gets built, however it gets built and what taxpayers volition pay.
California created its High-Speed Rail Authority 30 years ago, successful 1996. Nearly 2 decades person passed since voters approved billions successful backing for a slug bid connecting San Francisco and Los Angeles.
Yet the authorities inactive hasn't laid a mile of high-speed obstruction track.
Meanwhile, a CBS California probe found the High-Speed Rail Authority, nether Choudri, repeatedly missed its ain deadlines to acquisition trains. Federal officials cited those failures erstwhile they withdrew $4 cardinal successful funding.
As of October, nary high-speed obstruction way had been laid, and the project's independent inspector wide warns California could tally retired of wealth arsenic soon arsenic December 2027 unless it secures further financing.
The authorization says it is revising designs and changing the project's scope to trim costs. The inspector wide said overmuch of the projected outgo simplification reflected plans to physique less, similar reducing the plans from 2 tracks to one.
But successful a separate review of the authority's 2026 concern plan, the inspector wide recovered that the project's docket slipped 9 months successful little than a year.
Whistleblowers wrong the authorization question whether the promised savings relationship for the costs of further delays and further advisor work.
That brings america backmost to the late-night rides from the CEO's home.
The receipts don't amusement who was contiguous oregon what decisions, if any, were made oregon what discussions were had astatine the residence and adjacent restaurants.
But whistleblowers pass of progressively costly delays portion California pays consultants a 4th of a cardinal dollars to assistance signifier decisions, sometimes starring to much delays. They judge taxpayers merit answers.
Who projected the plan changes? Who approved them? How overmuch are consultants charging to revise the work? And bash the projected savings outweigh the costs of delay?
The receipts uncover wherever the consultants went. The bigger question, accidental whistleblowers, is what taxpayers are getting successful return.
To beryllium continued…
Why is California paying high-speed obstruction consultants to alert to Sacramento erstwhile they promised they would beryllium based successful Sacramento?
In portion 2 of our series, The Receipts, CBS California Investigates the wealth down a $131 cardinal engineering contract.
The steadfast promised its cardinal unit would relocate to Sacramento. But recently obtained receipts uncover 3 of the six are traveling successful from retired of authorities connected the taxpayers' dime, portion 1 elder consultant's billing complaint accrued astir 23%.
The watchdog questioned much than $76,000 successful question expenses. Our probe reveals the receipts.
[EDITORS NOTE: This communicative was updated to see caller details pursuing the High Speed Rail Board gathering connected October 9, 2026.]
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