A Pennsylvania man has pleaded not guilty to three counts of wire fraud in U.S. District Court in St. Louis, Mo., after over the course of five years, at least 10 victims allegedly lost more than $500,000.
Elijah A. Goshert, 47, is accused of defrauding investors in a sports betting fund. In November of last year, he was indicted for using investors’ money for personal expenses. According to the indictment, Goshert deceived investors by claiming to run an investment fund called the Magellan Sports Fund, which placed sports bets using a “sophisticated computer algorithm” designed to substantially reduce risk. Investors were sent fake updates and account statements when they attempted to withdraw cash and inquire about the fund’s performance.
Goshert assured investors he would only make money if the bets turned a profit. However, the indictment alleges that he used their funds for personal expenses, including mortgage payments, private school tuition fees and vacations to Disney parks.
Prior to these allegations, Goshert worked for a telecommunications company. If convicted, he could be sentenced to up to 20 years in prison and face a $250,000 fine for each charge. The FBI conducted the investigation and Attorney Derek Wiseman is prosecuting the case.
