Michelle Bisnoff convicted in $2 million smart ring Ponzi scheme

Michelle Bisnoff, the former CEO of Esos Rings Inc., has been convicted on multiple counts of fraud in connection with a nearly $2 million Ponzi scheme. Following a seven-day trial in a federal courtroom, Bisnoff was found guilty of six counts of securities fraud, six counts of wire fraud, two counts of money laundering, one count of wire fraud related to a COVID-19 business loan, and one count of aggravated identity theft.

Prosecutors established that after being fired from McLear Ltd., a company specializing in near-field communication payment rings, Bisnoff devised a scheme to claim ownership of the company’s patent. She used a fabricated patent assignment and the forged signature of her former employer to market her own company, Esos Rings.

To secure funding, Bisnoff misled investors by claiming Esos Rings was profitable and had established relationships or pending deals with major entities, including Apple Inc., Roc Nation, Target, and Walmart. She also falsely claimed the company was nearing a licensing agreement with Middle Earth Enterprises. In reality, the company had little to no revenue and very few sales. The investigation revealed that the payments made to some investors were not from legitimate capital investments, but were Ponzi payments funded by money obtained from new investors.