PA man indicted amid FBI probe into alleged fraudulent betting fund

FBI Sports Betting Fund
Image: Shutterstock

The FBI is responsible for the indictment of a Pennsylvania man who faces allegations of operating a fraudulent sports betting fund.

The U.S. Attorney’s Office of the Eastern District of Missouri has announced that Elijah A. Goshert was arrested in November 2023 on three counts of wire fraud for allegedly using the money of investors in an investment fund for personal expenses.

The fund, Magellan Sports Fund, was allegedly used to place sports wagers using a specialized computer algorithm that was designed to reduce risk. However, Goshert allegedly used investors’ money to fund personal vacations, mortgage payments, and school tuition.

The 47-year-old had allegedly told investors in the fund that he would not make money from their contributions unless the wagers turned a profit. As a result of his illicit spending, Goshert allegedly falsified investor account statements and sent fabricated updates.

Goshert allegedly swindled at least 10 investors who lost more than $500,000 each.

The Pennsylvania native faces up to 60 years in prison for his three counts of wire fraud and could also be ordered to pay a $250,000 fine. Goshert, who was employed full-time at a telecom company during his alleged instances of fraud, has pleaded not guilty.

Recent legal woes in sports betting and fantasy

Earlier this week, former Jacksonville Jaguars employee Amit Patel was sentenced to more than six years in prison for embezzling more than $22 million from the team. Patel used the Jaguars’ virtual credit card to fund luxury expenses, including vacations and sports memorabilia. He also transferred roughly $20 million to use on FanDuel.