The head of a wearable technology firm was sentenced to serve significant time in prison for orchestrating a nearly $2 million Ponzi scheme. Michelle Bisnoff, who leads Esos Rings Inc., was found guilty of deceiving investors with false claims about patent ownership and illegally securing a federal loan meant for business relief during the pandemic.
According to the U.S. Attorney’s Office, Bisnoff initiated the scheme in 2017 by alleging that she owned patented near-field communication (NFC) payment rings that actually belonged to a UK company, McLear Ltd. They had contracted her to help expand their presence in the U.S. market.
She lured investors by promising the money would be used to increase production and stock up on inventory to meet demand from major retailers such as Target and Walmart.
However, in reality, Esos had no contracts with these retailers, had generated minimal income, and sold only six rings through Walmart—three of which were returned. Furthermore, she falsely asserted that companies like Apple Inc. and Roc Nation were backing her firm, although no such agreements existed.
When Bisnoff couldn’t deliver the returns she promised, she offered excuses that an investor described as lacking credibility. She even tried to embezzle around $550,000 from an employer to settle debts with investors, but those checks ended up bouncing. In total, she reportedly defrauded investors of almost $2 million, directly leading to around $1.4 million in losses.
In addition to the investment fraud, she applied for federal COVID-19 relief under the Economic Injury Disaster Loan (EIDL) program in March 2020, securing a $150,000 loan. She misused a portion of that funding for personal expenses, including a hefty $15,600 monthly rent for a house in Pacific Palisades.
This year, the SEC had taken legal action against Bisnoff and her company, accusing them of swindling investors out of $1.95 million. A subsequent court order mandated them to pay over $836,000 within 20 days, but court records indicate that neither Bisnoff nor Esos has made any repayments.
U.S. District Judge Mónica Ramírez Almadani has scheduled a sentencing hearing for January 21, 2027. Bisnoff faces multiple convictions, including for fraud, money laundering, and identity theft. Each count of securities fraud and wire fraud could result in a maximum of 20 years in federal prison, while money laundering charges could add another 10 years. Additionally, the identity theft charges entail a mandatory two-year sentence that must be served consecutively to any other penalties imposed.
