Former Enron Corp. employees steamed over company's handling of retirement funds

DALLAS - Former Enron employees are angry that company executives debated whether to delay freezing their retirement accounts last year -- then went ahead with a lockdown that blocked workers from selling their stock. <br> <br> By the time the lockdown was lifted and employees could sell the Enron stock in their retirement plans, the shares had lost much of what little value they had. <br> <br> Angelina Lorio, whose retirement plan was practically erased, was also incensed to hear Cindy Olson, the Enron official responsible for retirement plans, testify that she was warned of accounting irregularities that could undermine the company, but disregarded them. <br> <br> &#34;She should have told the employees -- made an announcement about it,&#34; said Lorio, a 56-year-old clerical worker. &#34;We still would have taken a big loss, but we would have had more than what was left after the lockdown.&#34; <br> <br> Lorio figures she lost $500,000 worth of stock and options in the company&#39;s collapse. She has some savings left only because a broker urged her last year to diversify. <br> <br> Enron&#39;s stock price was already sliding when the company notified employees and retirees that it would prohibit changes in retirement accounts while it brought in a new outside company to administer the funds. <br> <br> The timing couldn&#39;t have been worse for participants who invested in Enron stock. They had already seen the shares plunge from $90 to $16.41 on Oct. 26, when the moratorium actually began. When the lockdown was lifted on Nov. 13, the shares opened at $9.24. <br> <br> Olson, an executive vice president for personnel, also testified that Enron executive Sherron Watkins warned her in August about accounting practices that could destroy the company. But Olson said at the time she didn&#39;t think it was necessary to tell retirement-plan participants. <br> <br> Eli Gottesdiener, a Washington attorney suing the company on behalf of employees and retirees who had 401(k) retirement plans at Enron, charged that Olson was more concerned with protecting Enron than helping employees and retirees. He said Olson should have ordered the liquidation of all Enron stock in the 401(k) plan. <br> <br> &#34;This woman is sitting on information that was screaming out to her, &#39;Get out of Enron stock,&#34;&#39; he said. <br> <br> Gottesdiener said Olson&#39;s decision against notifying employees contrasted with her actions -- she sold $6.5 million worth of stock, mostly in early 2001. <br> <br> Enron spokesman Mark Palmer said Olson handled the lockdown properly and dismissed the notion of selling Enron stock held in employees&#39; 401(k) plans based on Watkins&#39; warning about Enron&#39;s finances. <br> <br> Sue Nix, a 57-year-old accounting specialist, said she lost most of the $40,000 of stock in her retirement plan when the lockdown period was over. She joined Enron six years ago because it offered a retirement plan and was laid off Dec. 3, the day before Enron filed for bankruptcy. <br> <br> &#34;I don&#39;t see any way I can retire now,&#34; Nix said. &#34;I see myself when I&#39;m 70, working in the local grocery store or in some office, if they&#39;ll have me.&#34; <br>