A Pennsylvania man has been indicted on three counts of wire fraud. Elijah A. Goshert, 47, is accused of defrauding investors in a sports betting fund for more than five years.
Goshert was indicted in St. Louis, Missouri, and could face a lengthy prison sentence. It is not known whether Goshert placed wagers using PA online sportsbooks, specifically, or whether his alleged victims placed bets all around the US.
Indictment: PA resident used fake sports betting fund to lie to investors
The legal process of this case dates back to November when a series of events occurred:
- Nov. 15, 2023: Goshert indicted on three counts of wire fraud
- Feb. 28, 2024: Goshert arrested in Pennsylvania
- Tuesday: Pleaded not guilty in US District Court in St. Louis
The indictment claims that Goshert:
“Told investors that he ran an investment fund called the Magellan Sports Fund. Goshert said the fund placed sports bets using a ‘sophisticated computer algorithm’ that substantially reduced risks, the indictment says. Goshert told investors he would not make any money unless the bets turned a profit, but the indictment says Goshert actually used investors’ money for his personal expenses, including Disney vacations, private school tuition and mortgage payments.”
Goshert also sent fake updates and account statements to investors who tried to withdraw cash. A minimum of 10 victims lost more than $500,000, the indictment states.
If convicted, Goshert could face up to 20 years in prison while also paying a $250,000 fine for each charge.
PGCB to release February sports betting revenue next week
The Pennsylvania Gaming Control Board (PGCB) is set to unveil the handle and revenue for sports betting in February next week.
Pennsylvania sportsbooks came back down to earth in January after generating over $900 million in handle for November and December. Operators produced $858.2 million in January, which isn’t too shabby, despite a lighter football calendar.
February is likely to take a dramatic decrease in handle. Last year, February handle declined 22.4%, with the Super Bowl as the main event of the month. While sports betting remains strong in the Keystone State, a considerable drop is expected.
A 22.4% reduction from January would bring February’s handle to $669.4 million this year, which would still be a year-over-year increase of 11.7%.
February’s handle could be anywhere between $600 to $700 million.
