Release: 4957-04
For Release: July 15, 2004

COMMODITY FUTURES TRADING COMMISSION FILES ENFORCEMENT ACTION AGAINST FORMER CEO OF ANICOM, INC.

Pending Federal Criminal Charges Against Scott C. Anixter Alleged As Grounds for Suspending His CFTC Floor Trader Registration

WASHINGTON – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it commenced a registration action against Scott C. Anixter (Anixter) of Glencoe, Illinois, who currently holds floor trading privileges at the Chicago Board of Trade. The CFTC action is based on a federal criminal indictment charging Anixter with 20 felony counts of securities fraud, bank fraud, and making false statements to financial institutions and to the U.S. Securities and Exchange Commission.

The October 23, 2003, indictment filed by the U.S. Attorney’s Office in Chicago relates to Anixter’s duties as Chief Executive Officer, Chairman and a member of the Board of Directors for the now-defunct Anicom, Inc., a national distributor of wire and cable products that had been based in Rosemont, Illinois. According to the criminal indictment, during the period of June�1998 through at least March�2000, Anixter and various co-schemers created fictitious sales of at least $24�million, understated expenses, and overstated net income and earnings by millions of dollars, knowing that the false financial information was being provided to investors, auditors, lenders, and securities regulators. The case is pending before Judge Robert W. Gettleman.

Anixter has been registered with the CFTC as a floor broker for more than 20 years, except for a six-month suspension in 1990. That suspension was one of several actions taken by the CFTC against floor traders at the Chicago Board of Trade and Chicago Mercantile Exchange resulting from an undercover sting operation by FBI agents posing as traders in the late 1980s.

The Commission's Notice of Intent states that the relevant indictment charges Anixter with the commission of, or participation in, crimes involving violations of federal law that reflect upon his honesty or fitness of to act as a fiduciary and that are punishable by imprisonment for a term exceeding one year. Accordingly, pursuant to the federal commodity laws, Anixter’s registration can be suspended until his criminal matter is completed. If Anixter is found guilty of the charges, his floor broker registration can then be permanently revoked.

The following CFTC Division of Enforcement staff are responsible for this case: William P. Janulis, Charlotte A. Ohlmiller, and Rosemary Hollinger.

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Media Contacts
Alan Sobba
(202) 418-5080
Dennis Holden
(202) 418-5088
Office of External Affairs

Staff Contact
Rosemary Hollinger
Associate Director and Regional Counsel
CFTC Division of Enforcement
(312) 596-0520

Related Document
Notice of Intent