Missouri Man Sentenced to 4 Years in Prison for $600K Betting Fund Scam

A 48-year-old man from Missouri was sentenced to 48 months in prison after being found guilty of defrauding investors over six years in a sports betting fund scam.

Missouri Man Found Guilty of Conducting Sports Betting Scam

On Wednesday, U.S. District Judge Matthew T. Schelp sentenced a man by the name of Elijah A. Goshert to 4 years in prison after he was found guilty of conducting a betting scam. The Missouri man was additionally ordered to repay more than $650,000 to the victims.

In October of last year, Goshert pleaded guilty in U.S. District Court in St. Louis to three counts of wire fraud. Each wire fraud charge carried a potential penalty of up to 20 years in prison, a $250,000 fine, or both jail and a fine. The final verdict was pronounced on Wednesday, January 22, 2025.

According to official reports, Goshert’s scheme goes back to at least February of 2017. The man falsely claimed his “Magellan Sports Fund” used an advanced computer algorithm that substantially reduced betting risks. Victims were tricked into investing in Goshert’s scheme, allowing him to steal a total of $654,861 from at least 12 victims.

He regularly provided investors with false performance updates that highlighted significant profits. Goshert often used the money he received for personal expenses and this scheme lasted until November of 2023.

According to Special Agent in Charge Ashley Johnson of the FBI St. Louis Division, scamming people who trust you is “especially loathsome.” Johnson explained that this type of scam is not unique. They said that it’s called affinity fraud when white-collar criminals take advantage of the trust that is already present within their social networks.

The Victims Speak Out

Goshert’s victims were defrauded tens of thousands of dollars over the years the scheme was active. In a letter to the court, one of the victims claimed they had lost almost $60,000 investing in the Magellan Sports Fund. In addition, the victim said that they had spent more than $20,000 in legal fees trying to recoup the lost funds.

Meanwhile, another victim of Goshert’s scheme claimed they had experienced severe psychological distress over the situation. They had invested $50,000 in the fraudulent fund and later they suffered emotional damage caused by ongoing anxiety, stress, and the betrayal of trust by someone they considered a close friend.

Apparently, Goshert continuously lied to the victim repeatedly, claiming he was unable to access money and falsely contending he’d sold the fund to a private equity firm. According to Assistant U.S. Attorney Derek Wiseman, Goshert‘s activities were a “yearslong sophisticated scheme,” and not just  a “one-off lapse in judgment.”