Magellan Sports Fund Owner Pleads Guilty to Falsifying Betting Results, Defrauding Investors
Elijah A. Goshert, 48, from Pennsylvania, pleaded guilty on Oct. 17 to three counts of wire fraud, according to a DOJ press release. Goshert admitted to scamming at least 12 investors, stealing around $654,861 in total funds.
Goshert’s sentencing hearing is set for Jan. 25, 2025, according to the DOJ release. He could receive 20 years for each of the three counts of wire fraud to which he pled guilty.
Fake Investment Fund Scam
Goshert worked at a telecommunications company in the Eastern District of Pennsylvania but claimed to potential new wealthy investors that he also ran and operated an investment fund, according to the indictment. The investor fund Goshert claimed to run was called Magellan Sports Fund.
Goshert claimed to use the Magellan Sports Fund to place sporting-based bets on his investors’ behalf, using the money they invested with him, prosecutors say. Goshert lured in new investors by promising them that he could significantly reduce the risks usually associated with betting on sports by using a “sophisticated computer algorithm.”
Between Feb. 1, 2017, and Nov. 15, 2023, Goshert collected hundreds of thousands of dollars in investments from Magellan investors, assuring them their money would only be used for placing bets, according to the indictment. Goshert also promised to split a percent of the winnings with his investors and claimed he wouldn’t make any money from the deal unless the investment turned a profit.
As a result of Goshert’s claims, investors were convinced that their money would go towards the sports bets and not towards Goshert’s personal expenses, the indictment details. Goshert, however, admitted to taking the investor money in the Magellan fund and spending it on lavish Disney vacations, the mortgage at his personal residence and private school tuition.
To keep up the appearance of using the investor’s funds for the intended purpose of sports betting, Goshert sent emails to his investors, claiming to have made bets on their behalf that he never made, according to the indictment. He also sent update emails about the investor’s performance, telling his investors that they earned significant returns on their investments, which was inaccurate.
When Goshert’s investors began asking for the returns on their investments, Goshert made up excuses, according to court documents. Goshert told one investor that he had mailed checks he didn’t actually send out. He told another investor that his earnings were in cash and that arranging a cash pickup would be too suspicious. He then reminded the investor about the NDA the investor signed.
Watch Out for Betting Scams
Betting scams can look legit, and they usually emphasize their services as “risk-free” to the investor, according to a Better Business Bureau (BBB) article. All betting involves risk.
In many cases, signing up and investing is easy, but the problem arises when it is time to cash out or get your money back. Ignore betting ads that “sound too good to be true.” Read the entire contract before you sign it, or get a lawyer to look it over to spot any potential issues.
Ensure your betting service is “white-listed” and approved by the gaming commission in your area, as advised by the BBB. If you have been scammed or have become the target of a scam, it is best to report it immediately to the BBB scam tracker and law enforcement.
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