Man Sentenced to 4 Years in Prison for Stealing $650K from Sports Betting Fund

Elijah A. Goshert, 48, has been sentenced to four years in federal prison for stealing $650,000 from investors in a sports betting fund, according to the U.S. Attorney’s Office for the Eastern District of Missouri.

The U.S. attorney’s office has revealed that Goshert was involved in defrauding investors in the “Magellan Sports Fund” from February 1, 2017, to November 15, 2023.

According to the department, Goshert made a false claim that he was utilizing a “sophisticated computer algorithm” that significantly minimized the risks associated with betting.

Goshert deceived investors by sending them misleading updates about their investment performance, falsely claiming that they were making significant profits. However, he actually used the majority of their investments for unauthorized expenses.

The U.S. attorney’s office has revealed that Goshert illicitly took approximately $654,861 from a minimum of 12 victims.

One of Goshert’s victims shared his harrowing experience in court documents, revealing that he lost $60,000 and had to spend an additional $20,000 in legal fees in his attempt to recover his money, according to the U.S. attorney’s office.

According to the U.S. attorney’s office, an individual who invested $50,000 expressed that they experienced significant emotional and psychological harm as a result of feeling betrayed by someone they once considered a close friend.

FBI officials have stated that Goshert misled them by providing false reasons for his inability to access his money. He even went as far as claiming that he had sold the betting fund to a private equity firm.

“Scamming people who trust you is especially loathsome,” said Special Agent in Charge Ashley Johnson of the FBI St. Louis Division.

“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.”

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