A man from Pennsylvania has been indicted in St. Louis and accused of defrauding investors in a sports betting fund for more than five years.
Elijah A. Goshert, 47, was indicted on 15 November 2023, on three counts of wire fraud. Goshert was arrested in Pennsylvania on 28 February 2024, and pleaded not guilty in U.S. District Court in St. Louis Tuesday.
The indictment says Goshert, who had a day job at a telecommunications company, told investors that he ran an investment fund called the Magellan Sports Fund. Goshert said the fund placed sports bets using a “sophisticated computer algorithm” that substantially reduced risks, the indictment says. Goshert told investors he would not make any money unless the bets turned a profit, but the indictment says Goshert actually used investors’ money for his personal expenses, including Disney vacations, private school tuition and mortgage payments.
Goshert sent fraudulent “updates” and account statements to investors and lied to investors when they tried to withdraw cash, the indictment says. At least 10 investors lost more than $500,000, the indictment says.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Each wire fraud charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
