SAN MATEO COUNTY, Calif. — This week, two ex-employees of Caltrain, a California commuter rail service, were handed a joint sentence of six months in jail.

In 2024, both were indicted for the felony theft of public funds. They used the embezzled money to construct hidden apartments at the Burlingame and Millbrae Caltrain stations.

“That’s why I warn people against thinking they’ve seen it all,” said San Mateo County District Attorney Steve Wagstaffe, highlighting the unexpected nature of such incidents.

Wagstaffe tells our sister station, ABC7 News in San Francisco, the men lived inside the apartments for several years.

In total, they spent over $40,000 building them and even had things like office spaces and living rooms inside.

“When it’s public money that is being stolen by a public employee, that’s egregious. That takes it up a level,” Wagstaffe said.

Both men followed a similar scheme in order to create the apartments. They made this work by hiring contractors to remodel former office space but kept invoices under $3,000 each, so they could be approved.

Caltrain was unavailable for an interview but sent ABC7 News a statement, which reads in part: “The misuse of public funds for private use is a violation of the law, Caltrain policy and the public’s trust…in cases where there is evidence of unlawful conduct by an employee or a contractor, we immediately act to rectify the situation.”

Outside the Burlingame Caltrain station Friday afternoon, many passengers were shocked to learn what had been going on.

“Now I’m looking at the building, I want to know what kind of furniture he has upstairs,” said Teddy Agreda.

Bill Craumer tells us he takes the train about once a week. He said he never had any indication someone was actually living there.

“And I’m surprised nobody else noticed as well. So, he obviously kept well under the radar for everyone,” Craumer said.

Caltrain was told to keep the apartments as they are while the cases were making their way through court. And even though they were relatively simple, they’ll likely leave an impression on many here for quite some time.

“Maybe once in a while in life, people can do these crazy things. I think he’s loco,” Agreda said.