NU Online News Service, Dec. 19, 2:13 p.m. ? Members of 401(k) plans sponsored by Enron Corp., Houston, pleaded for help Tuesday at a hearing of the U.S. Senate Commerce Subcommittee.
Enron, a large natural gas and energy trading company, recently filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.
The company had contributed its stock to employee 401(k) accounts, and critics say it did little to discourage employees from buying more Enron stock with their own cash.
Charles Prestwood, an Enron retiree from Texas, told the senators he has lost $1.3 million in 401(k) plan assets.
Robert Vigil, a retiree from an Enron subsidiary in Oregon, said he and seven other employees and retirees have lost a total of $2 million in plan assets.
“To the best of my knowledge, no one ever suggested we diversify,” Vigil testified.