[Congressional Record Volume 148, Number 2 (Thursday, January 24, 2002)]
[Extensions of Remarks]
[Page E18]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      THE INTRODUCTION OF THE ENRON EMPLOYEE PENSION RECOVERY ACT

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                           HON. MAXINE WATERS

                             of california

                    in the house of representatives

                       Thursday, January 24, 2002

  Ms. WATERS. Mr. Speaker, today I rise to introduce the Enron Employee 
Pension Recovery Act. This legislation will enable Enron employees who 
lost their retirement savings to recover more of their lost assets.
  When the Securities and Exchange Commission brings an action against 
a company or individual, any ill-gotten gains are placed in a 
disgorgement fund, and the proceeds are distributed to the victims of 
the wrongdoing. It is very likely that the disgorged profits of Enron 
executives will not begin to cover the losses experienced by Enron 
employees.
  These employees were encouraged to heavily invest in Enron stock, and 
were not permitted to divest when the stock value was plummeting. My 
legislation would provide that the Enron disgorgement fund contain not 
only the disgorged profits of the wrongdoers, but also any civil 
penalties that are levied. In addition, my bill alters the Federal 
Election Campaign Act to permit elected officials to contribute to this 
fund from their campaign accounts. In this way, the hundreds of 
thousands of dollars that were contributed by the officers of Enron can 
be used to benefit the employees.
  My legislation would work within an existing structure to ensure that 
real relief is granted to these employees who lost both their jobs and 
their retirement savings while the officers and directors profited. In 
addition, the staggering sums that were contributed to politicians by 
the officers and directors of Enron, can be redirected to benefit these 
employees. I urge all of my colleagues to join me by cosponsoring the 
Enron Employee Pension Recovery Act.

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