A Pennsylvania man has been indicted in St. Louis and accused of running a fraudulent sports betting fund, according to a press release issued Tuesday by the United States Attorney's Office, Eastern District of Missouri.
Elijah A. Goshert, 47, was indicted last November on three counts of wire fraud and was arrested in Pennsylvania on Feb. 28. He pleaded not guilty in U.S. District Court Tuesday.
The indictment alleges that Goshert, a telecommunications professional, deceived investors for over five years by claiming to operate an investment fund called the Magellan Sports Fund, which purportedly utilized a sophisticated computer algorithm to mitigate risks when placing sports bets.
He went to Disneyland
Goshert allegedly misrepresented that he would only profit if the bets were successful. However, the indictment alleges that Goshert misappropriated investors’ funds for personal expenses, such as Disney vacations, private school tuition, and mortgage payments.