Tech Executive Convicted Of Multimillion-dollar Smart Ring Fraud And Pandemic Loan Scam

Michelle Bisnoff faces decades in federal prison after a jury finds her guilty.

Federal jurors have convicted the chief executive of a wearable technology company for orchestrating a near-$2 million investment scam involving fake patents and illegally securing $150,000 in federal pandemic relief funds.

Michelle Bisnoff, 59, who formerly resided in Pacific Palisades and Santa Barbara before moving to Boca Raton, Florida, was found guilty Thursday on 16 federal counts, including securities fraud, wire fraud, money laundering, and aggravated identity theft.

Evidence presented during the seven-day trial showed that Bisnoff was hired by U.K.-based McLear Ltd. to develop a U.S. market for payment rings containing near-field communication technology. By 2017, Bisnoff falsely asserted ownership over key patents using forged assignment documents, establishing Esos Rings Inc. to solicit funds for the product line.

Federal prosecutors proved that Bisnoff engaged in extensive smart ring fraud, deceiving investors with claims that Esos was highly profitable, expanding inventory for major retailers like Target and Walmart, and securing capital from Apple Inc. and Roc Nation. She also falsely promised lucrative stock buybacks and claimed to be finalizing a licensing deal with Middle Earth Enterprises for “The Lord of the Rings” brand.

In reality, Esos generated minimal revenue, had no retail partnerships, sold only three net items online, and received no institutional backing. Bisnoff supplied investors with falsified tax filings and financial reports, using victim funds to cover personal rent and make Ponzi-style payouts.

Additionally, Bisnoff fraudulently applied for a $150,000 Economic Injury Disaster Loan in March 2020 by misrepresenting company revenues, later diverting the relief funds to pay for a $15,600-per-month residential lease in Pacific Palisades.

U.S. District Judge Mónica Ramírez Almadani scheduled sentencing for Jan. 21, 2027. Bisnoff faces up to 20 years in federal prison for each count of securities and wire fraud, 10