Futures traders charged in alleged $1.3 bln scam

From at least 1996, Walsh and Greenwood raised roughly $1.3 billion from investors for Westridge Capital Management, WG Trading Investors LP and other investment vehicles.

They "falsely depicted" that all investors' money would be used in an index arbitrage strategy. But roughly $553 million was instead transferred to another entity from which Walsh and Greenwood siphoned funds, the CFTC's complaint alleged.

More than $160 million was used for Walsh's and Greenwood's personal expenses, including purchasing rare books, horses, Steiff teddy bears for as much as $80,000 as well as a $3 million residence for Walsh's ex-wife, the CFTC said.