A wearable tech company’s boss will spend decades in prison for running a near-$2 million Ponzi scheme, duping investors with fabricated patent ownership and fraudulently obtaining a federal business-relief loan during the pandemic.
Michelle Bisnoff, CEO of Esos Rings Inc., began the scheme in 2017 by claiming ownership of patented near-field communication (NFC) payment rings that actually belonged to McLear Ltd., a UK-based company that had hired her to develop its U.S. market, the U.S. Attorney’s Office said Friday.
She solicited money by telling investors the funds would boost manufacturing and build inventory to meet high demand from major retailers like Target and Walmart, authorities said.
In reality, Esos had no agreements with Target, had generated very little revenue, and had sold just six rings through Walmart, three of which were returned by customers.
She also falsely claimed that Apple Inc. and Roc Nation were investing in the company, though Esos had no deals with either entity.
When Bisnoff failed to deliver promised returns, she offered what an investor at her seven-day trial described as “dog-ate-my-homework” excuses.
She then attempted to embezzle approximately $550,000 from an employer to pay back investors, but those checks bounced. In total, Bisnoff defrauded investors out of nearly $2 million, causing roughly $1.4 million in direct losses.
Alongside the investment fraud, Bisnoff illegally applied for federal COVID-19 relief through the Economic Injury Disaster Loan (EIDL) program in March 2020. After receiving a $150,000 loan, she funneled part of the funds into her personal lifestyle, including a $15,600 monthly rent payment on a leased house in Pacific Palisades.
Back in 2023, the SEC had sued Bisnoff and her company for ripping off investors to the tune of $1.95 million. Later that year, a court ordered them to cough up over $836,000 in 20 days. But according to court records, neither Bisnoff nor Esos has paid back a single dime.
U.S. District Judge Mónica Ramírez Almadani has scheduled a Jan. 21, 2027, sentencing hearing following Bisnoff’s conviction on multiple fraud, money laundering, and identity theft charges.
Each count of securities fraud and wire fraud carries a statutory maximum penalty of 20 years in federal prison, while each money laundering charge carries up to 10 years.
Additionally, the aggravated identity theft counts carry a mandatory two-year federal prison sentence that must be served consecutively to any other term imposed.
