I HAVE NOTHING TO COMMENT
Enron demanding money back from former employees
07:34 PM CDT on Thursday, May 15, 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
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More Video 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 Gerald Treece.
We asked Holloway, “how insulting is that?"
"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 to 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 to pay Enron back.
Ironically, that’s essentially what the company told its employees seven years ago.