According to the US Attorney's Office, Eastern District of Missouri, at least 10 investors lost more than $500,000 from an investment fund run by Elijah Goshert, 47.
Goshert’s Magellan Sports Fund claimed to significantly reduce risk in sports betting by using a “sophisticated computer algorithm,” the US Attorney’s Office said in a press release.
For more than five years, Goshert sent fraudulent “updates” and account statements to investors and used investor money for personal expenses like Disney vacations, private school tuition, and mortgage payments. When investors tried to withdraw cash, he lied about his use of the funds and now he is facing three counts of wire fraud following an indictment on November 15, 2023.
He was arrested in Pennsylvania on February 28 and pleaded not guilty in US District Court in St. Louis Tuesday.
Although charges outlined in an indictment are merely accusations and do not constitute proof of guilt, Goshert is facing up to 20 years in prison and/or a $250,000 fine for each wire fraud charge should he be found guilty
