• :
  • Member Center
  • :
  • Make This Your Home Page
  • :
  • Special Offers




LOCAL NEWS

Comments | Recommended

Enron demanding money back from former employees

05:02 PM CDT on Friday, May 16, 2008

By Kevin Reece / 11 News

Jo Ann Holloway is one of the former Enron employees who got a letter demanding she repay her settlement to the company

HOUSTON -- The financial implosion of Enron cost thousands of Houstonians tens of millions of dollars. A class-action lawsuit recovered some of the losses for former employees who lost more than their jobs in the company’s collapse.

Now, the painful memories of seeing their jobs and retirement plans go up in smoke have a new twist.

Former Enron employees say they've been getting letters from Enron, demanding they pay back some of the settlement money.

Jo Ann Holloway is one of the employees who got the letter. 11 News found her in Stafford.

These days, she's a mapping specialist for the public works department in Stafford.

Years ago, we would have found her among the thousands fired when Enron folded. Her Enron retirement plan also went under that day.

"I'd say (I lost) $70,000 or $80,000," Holloway said.

11 News: That just vanished?

Holloway: "Poof, the magic dragon. Gone”

Two years ago, she got some of that money back. A class action settlement got her $726.22.

"I was appalled that's all they sent,” said Holloway.

Now Enron, which cost her tens of thousands of dollars, wants her to give that $726 back.

"This is pitiful. That was my initial reaction,” she said.

A letter from Enron claims there had been "significant calculation mistakes” in paying her portion of the settlement.

Enron says that of the 26,000 people in the settlement coordinated by a third party company, 87 percent were underpaid. And 13 percent, including Holloway, were paid too much.

A company spokesperson told us "we're certainly sympathetic to their plight and the issue, but as a fiduciary we have a legal obligation to make the request for the funds."

And 11 News’ legal expert agrees – to a point.

"The bad news is, you probably have to pay it back if, in fact, you were overpaid by this third party company,” said 11 News Legal Analyst Gerald Treece.

Holloway said it adds insult to injury.

"I don't know. Kick your a--, bend over and let me do it again,” she said with a frustrated laugh.

Another interesting note to this latest chapter in the Enron saga: Enron actually discovered the miscalculation about a year ago. But the former employees are just now receiving these letters.  

Treece recommends Enron employees who get the letter go ahead and contact the settlement attorney to see if they really owe the money.

After that, they can file a hardship waiver, claiming there's no way to pay Enron back.

Ironically, that’s essentially what the company told its employees seven years ago.

Inside KHOU.com

News Your Way: Get KHOU.com headlines
delivered to your favorite RSS reader.

Submit your Pics: Upload photos and browse others in our Pics section.

Submit Your Video: Upload your videos and browse others in our video section.

Find Activities: What's happening in your neighborhood? Community Calendar.

Discuss the News: Talk about the latest news, weather and entertainment headlines in our online forums.

Popular Stories