SEC Sanctions Greenbrier Companies and Founder for Failing to Disclose Exec Perks and Compensation

The Securities and Exchange Commission (SEC) announced settled charges against The Greenbrier Companies Inc., an Oregon-based freight transportation supply company, and its former CEO and Chairman William A. Furman for failing to disclose executive perks and compensation that Furman received from Greenbrier’s charters of his private plane for travel by company executives. Both Greenbrier and Furman have agreed to pay civil penalties; Greenbrier will pay $1 million and Furman will pay $100,000. According to the SEC’s orders, during fiscal years 2017 to 2021, Greenbrier paid an aircraft management company approximately $3 million to charter Furman’s privately owned plane for business-related travel, without disclosing that Furman was receiving approximately $1.6 million of that amount. Additionally, Greenbrier failed to disclose approximately $320,000 in perks provided to Furman and other executives for their spouses to attend customer and industry receptions and other functions. Greenbrier and Furman violated negligence-based antifraud and proxy provisions of the federal securities laws and committed reporting, books and records, internal accounting control violations. To settle the charges, both agreed to cease-and-desist from any future violations of the securities laws.