ST. LOUIS – U.S. District Judge Matthew T. Schelp sentenced a man who stole $650,000 from investors in a sports betting fund to 48 months in prison and ordered for him to repay the money.
Elijah A. Goshert, 48, defrauded investors in the “Magellan Sports Fund” from at least Feb. 1, 2017, through Nov. 15, 2023. Goshert falsely claimed that he was using a “sophisticated computer algorithm” that substantially reduced betting risks.
Goshert sent false performance updates and claimed substantial investment profits while spending most of the victims’ investments on unauthorized expenses. Goshert stole about $654,861 from at least 12 victims.
One of Goshert’s victims said he lost $60,000 and spent another $20,000 in legal fees over years trying to get his money back.
Another victim who invested $50,000 considered Goshert a close friend and claims they’re now experiencing severe emotional and psychological damage due to chronic anxiety and stress over the betrayal.
Goshert repeatedly lied to the victim about why he couldn’t access his money, even falsely claiming that he’d sold the betting fund to a private equity firm.
“Scamming people who trust you is especially loathsome,” Special Agent in Charge Ashley Johnson of the FBI St. Louis Division said. “Unfortunately, the way Elijah Goshert targeted his victims is not unique. When white-collar criminals exploit the trust that already exists within their social circles, it’s known as affinity fraud.”
Goshert pleaded guilty in October in U.S. District Court in St. Louis to three counts of wire fraud.