{"id":61863,"date":"2026-09-25T14:17:45","date_gmt":"2026-09-25T21:17:45","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=61863"},"modified":"2026-09-25T14:17:45","modified_gmt":"2026-09-25T21:17:45","slug":"smart-ring-ceo-michelle-bisnoff-ponzi-scheme-convictionsmart-ring-ceo-michelle-bisnoff-ponzi-scheme-conviction","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=61863","title":{"rendered":"Smart Ring CEO Convicted in Nearly $2 Million Ponzi Scheme"},"content":{"rendered":"

\"\"SANTA ANA, Calif. \u2014<\/strong> A federal jury convicted the CEO of a smart ring company of defrauding investors of nearly $2 million by falsely claiming she owned a key patent, had deals with major retailers and would deliver substantial returns, officials stated.<\/span><\/p>\n

Michelle Bisnoff<\/strong>, 59, of Boca Raton, Florida, also was convicted of fraudulently obtaining a $150,000 COVID-19 business relief loan. <\/span><\/p>\n

The jury found her guilty Thursday, Sept. 24, of six counts of securities fraud, seven counts of wire fraud, two counts of money laundering and one count of aggravated identity theft. She formerly lived in Pacific Palisades and Santa Barbara.<\/span><\/p>\n

Bisnoff had been hired to develop a U.S. market for payment rings patented by her former employer, U.K.-based McLear Ltd. By early 2017, prosecutors said, she was falsely claiming ownership of a key patent and had formed Esos Rings Inc. to market the technology.<\/span><\/p>\n

She told investors Esos was profitable, needed money to fill demand from Target and Walmart, and was receiving investments from Apple and Roc Nation. She also claimed a licensing deal involving The Lord of the Rings<\/em> brand was near and promised to buy back investors\u2019 shares at a profit.<\/span><\/p>\n

The evidence told a different story: Esos had no Target agreement, sold only six rings through Walmart.com and received no investment from Apple or Roc Nation. The licensing deal was never finalized. Prosecutors said Bisnoff used much of the investors\u2019 money for personal expenses and payments to other investors. Investors lost about $1.4 million. <\/span><\/p>\n

In a separate part of the case, Bisnoff obtained a $150,000 federal Economic Injury Disaster Loan after providing false business figures. Although she certified that the money would be used for business expenses, prosecutors said she spent some of it on personal expenses, including rent on a Pacific Palisades home that cost about $15,600 a month.<\/span><\/p>\n

U.S. District Judge M\u00f3nica Ram\u00edrez Almadani<\/strong> scheduled sentencing for Jan. 21, 2027<\/strong>. <\/span><\/p>\n

Bisnoff faces a mandatory two-year consecutive prison term for aggravated identity theft, in addition to potential penalties on the fraud and money laundering counts.\u00a0<\/span><\/p>\n

The Securities and Exchange Commission brought a related civil case in 2023 over $1.95 million raised from investors. The Justice Department said Bisnoff and Esos had not paid the $836,548 due under a judgment in that case.<\/span><\/p>\n

Quick Fact Checklist<\/strong><\/span><\/p>\n