Lawsuits Seek Return of Enron Bonuses

HOUSTON -- The committee representing Enron Corp.'s former employees in its bankruptcy case is attempting to recover $72 million in bonuses paid to 292 employees, officers and executives of the company in the final hours before Enron filed for bankruptcy, The Associated Press reported Wednesday.

"We intend to hold 11th-hour bonus recipients accountable for their self-dealing as Enron fell into bankruptcy," said Richard D. Rathvon, co-chair of the employees' committee.

Four lawsuits, filed by the group earlier this year in federal bankruptcy court in Houston and recently consolidated, say the individual bonuses ranged from $200,000 to $5 million. The bonuses infuriated laid-off employees, who received relatively small severances, Rathvon said.

The employees' committee says the checks paid to the employees did not clear Enron's account until after the bankruptcy was filed, so the payments were not authorized by the New York bankruptcy court handling Enron's case and should be returned.

-- NYSSCPA.org News Staff

Posted on 7/23/03