Key Takeaways:
California High-Speed Rail Authority CEO Ian Choudri returned from voluntary leave in March after the Sacramento County DA declined to file charges, but the board's parallel investigation into his fiancée's employment at a $24 million Authority contractor remains open.
Choudri's fiancée, Lyudmyla "Mila" Starostyuk, was hired as a managing advisor at KPMG in early 2026, the same accounting firm that holds a $24 million financial advisory contract with the Rail Authority running through 2029.
The conflict investigation lands against a larger backdrop: the Federal Railroad Administration terminated roughly $4 billion in federal grants in July 2025, and the Authority missed its statutory March 2 deadline to release a 2026 Business Plan reckoning with the gap.
Folsom police arrested Choudri and Starostyuk on February 4 after a neighbor called 911 during a family dispute. The Sacramento County District Attorney's Office declined to file charges, citing an inability to establish a dominant aggressor. Choudri took voluntary leave. E&E News reported on March 5 that he was cleared to return.
The KPMG question is separate and has not resolved. Starostyuk's LinkedIn shows she was hired by KPMG as a managing advisor in early 2026, the same window in which the firm held and extended a $24 million financial advisory contract with the Rail Authority. Governor Gavin Newsom confirmed at a February press conference that Choudri is under investigation both for the domestic incident and for "conflict of interest allegations surrounding Starostyuk's work."
"Ms. Starostyuk's position is not affiliated with the high speed rail authority or any other rail authority in any capacity," said Allen Sawyer, attorney for Choudri and Starostyuk. The Rail Authority has not publicly confirmed whether her role triggers conflict-of-interest policies, and the board's review is ongoing.
Assemblymember Alexandra Macedo of the San Joaquin Valley sent Newsom a letter in late February calling Choudri's continued tenure an "insult" to taxpayers and demanding his resignation. As of mid-April, no leadership change has been announced.
The larger story is the balance sheet. The Federal Railroad Administration terminated roughly $4 billion in federal grants in July 2025 after a compliance review found the Authority failed to meet its obligations in nine distinct areas, including a $7 billion funding shortfall on the Initial Operating Segment. The statutory March 2, 2026 deadline for the 2026 Business Plan has passed.
A $24 million advisory contract on a project that lost $4 billion in federal funding, paired with an unresolved conflict disclosure, is the kind of file that does not close until somebody closes it.
People Also Ask
Q: Who is Ian Choudri? A: Ian Choudri is the CEO of the California High-Speed Rail Authority, appointed in August 2024 after working on high-speed rail systems in Europe. He was arrested February 4, 2026 on suspicion of misdemeanor domestic battery. The Sacramento County DA declined to file charges and he returned from voluntary leave in early March.
Q: What is KPMG's contract with California High-Speed Rail? A: KPMG holds a $24 million financial advisory contract with the California High-Speed Rail Authority running through 2029. The contract provides financial and management consulting services to the agency.
Q: Why is there a conflict of interest investigation? A: Choudri's fiancée Lyudmyla "Mila" Starostyuk was hired as a managing advisor at KPMG in early 2026, the same firm holding the $24 million contract with the agency Choudri leads. The couple's attorney says her role is unrelated to the rail contract. The Authority board is investigating whether the arrangement violates conflict-of-interest policies.
Q: What is the status of California High-Speed Rail funding? A: The Federal Railroad Administration terminated roughly $4 billion in federal grants in July 2025 after finding the Authority failed to meet nine compliance obligations. The project faces a $7 billion funding shortfall just on the Initial Operating Segment.
Sources and Related Reading:
California Policy Center: California High-Speed Rail at a Crossroads
E&E News: California rail CEO cleared to return after February arrest
Prism News: KPMG Hires CEO's Fiancée as Firm Lands $24 Million Rail Contract
WYDE: Nine States Seek $10.3 Million From Kroger After Blocking the Largest Grocery Merger
WYDE: FBI Arrests 15 in $50 Million Southern California Hospice Fraud Crackdown