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Pennsylvania Man Accused of Bilking Investors in Sports Betting Fraud Case

Davis Isabela

Updated on March 13, 2024 at 2:28 PM EDT. Read time: 1 min 28 sec. For more information, visit our Twitter and Google News links.

Some of the more than 400 proposition bets for Super Bowl LI are displayed as we look at the details surrounding the YieldSec report on illegal U.S. sports betting
Some of the more than 400 proposition bets for Super Bowl LI are displayed at the Race & Sports SuperBook at the Westgate Las Vegas Resort & Casino in Las Vegas, Nevada. Photo by Ethan Miller/Getty Images via AFP.

Since the Supreme Court overturned the blanket ban on sports wagering in 2018, the U.S. legal sports betting industry has managed to steer clear of major incidents of fraud largely due to the preventative measures implemented by top sportsbooks. Nevertheless, there have been recent reports of minor instances of fraud, with one occurring just last week.

This week, a Pennsylvania man was arrested and indicted for running a fraudulent sports betting fund, allegedly scamming investors out of $500,000.

The United States Attorney’s Office, Eastern District of Missouri, announced in a press release on Tuesday that Elijah A. Goshert, 47, has been indicted on Nov. 15, 2023, on three counts of wire fraud.

He was arrested on February 28th and entered a plea of not guilty to all charges.

The scheme

The United States Attorney’s Office has accused Goshert of defrauding investors in a sports betting fund for over five years.

The defendant told investors about a plan that included a complex computer algorithm for his Magellan Sports Fund, claiming that it would greatly minimize the risks of sports betting for those who invested in the fund.

Goshert informed the Fund’s investors that profit would only be possible if the bets were successful. However, it later emerged that the accused had misused the funds for personal gain.

Goshert is accused of misusing investment funds for his own personal expenses, such as Disney vacations, private school tuition, and mortgage payments. The indictment states that at least 10 investors were defrauded of over $500,000 in total.

Goshert’s plan involved deceitful updates, misleading statements to investors, and false information about the whereabouts of their money. The deception escalated when investors tried to withdraw funds from the Magellan Sports Fund.

In the end

Goshert is facing three charges of wire fraud, which could result in a maximum of 20 years in prison and a $250,000 fine for each count if convicted.

This fraud case serves as a cautionary tale for investors considering investing in unproven and unauthorized investment funds. While sports betting was the method used in this scheme, it should serve as a warning for both investors and sports betting enthusiasts to be vigilant in the future.

Written By:
Davis Isabela
Davis Isabela is the Editor-in-Chief of Underscoreg Review. He has been a writer, reporter and editor for more than 20 years, and his work has appeared in more than 200 publications across North America. His first book, “100 Greatest Canadian Sports Moments”, was a hardcover best-seller in Canada in 2008. He has written more than 50 sportsbook reviews and dozens of other sportsbook-related content articles. James has also been quoted as a sports betting expert in USA Today and Sports Illustrated.