U.S. District Judge Matthew T. Schelp has sentenced Elijah A. Goshert to 48 months in prison for defrauding investors out of $650,000 through a sports betting fund. Goshert, 48, was also ordered to repay the stolen funds.
Goshert operated the "Magellan Sports Fund" from February 1, 2017, to November 15, 2023. He misled investors by claiming he used a "sophisticated computer algorithm" to minimize betting risks and provided false updates on investment performance while using the funds for unauthorized expenses. The scheme affected at least 12 victims and resulted in approximately $654,861 being stolen.
One victim reported losing $60,000 and incurring an additional $20,000 in legal fees while attempting to recover his investment over several years. Another victim who invested $50,000 described experiencing severe emotional distress due to the betrayal by someone he considered a close friend. Goshert deceived this victim by falsely stating that the fund had been sold to a private equity firm.
Assistant U.S. Attorney Derek Wiseman characterized Goshert's actions as "a yearslong sophisticated scheme," rather than an isolated incident of poor judgment.
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,” she said. She further explained that targeting victims within one's social circle is known as affinity fraud.
Goshert pleaded guilty in October in U.S. District Court in St. Louis to three counts of wire fraud. The FBI conducted the investigation into this case, with Assistant U.S. Attorney Derek Wiseman leading the prosecution.