U.S. District Judge Matthew T. Schelp sentenced Elijah A. Goshert to 48 months in prison for defrauding investors of $650,000 in a sports betting fund named the "Magellan Sports Fund." The court also ordered Goshert to repay the stolen money.
Goshert, 48, conducted fraudulent activities from February 1, 2017, through November 15, 2023. He misled investors by claiming he utilized a "sophisticated computer algorithm" to minimize betting risks and sent false performance updates indicating significant profits. In reality, Goshert used most of the funds for unauthorized expenses, affecting at least 12 victims and amounting to approximately $654,861.
Victims shared their experiences with the court. One victim reported losing $60,000 and incurring an additional $20,000 in legal fees over years trying to recover his investment. Another investor who contributed $50,000 described experiencing severe emotional and psychological distress due to anxiety and betrayal by someone he trusted as a close friend. Goshert misled this victim by falsely claiming that he had sold the fund to a private equity firm.
Assistant U.S. Attorney Derek Wiseman emphasized in court that Goshert's actions constituted "a yearslong sophisticated scheme" rather than an isolated incident.
Special Agent in Charge Ashley Johnson of the FBI St. Louis Division commented on the nature of Goshert's crime: “Scamming people who trust you is especially loathsome,” adding that such crimes are known as affinity fraud when criminals exploit trust within social circles.
Goshert pleaded guilty in October in U.S. District Court in St. Louis to three counts of wire fraud. The FBI conducted the investigation while Assistant U.S. Attorney Derek Wiseman prosecuted the case.
