Tech CEO Convicted in $2M Ponzi Scheme, COVID Loan Fraud
Prosecutors said she raised more than $2 million from investors and used new money to make Ponzi payments and cover personal expenses.
- On Thursday, a federal jury in Santa Ana convicted Michelle Bisnoff of multiple financial crimes, including securities fraud, wire fraud, and money laundering tied to an almost $2 million Ponzi scheme involving fraudulent "smart ring" technology.
- After being fired by John McLear in October 2016, Bisnoff "devised a scheme to claim McLear US's patent and start her own company, called Esos Rings," incorporating the venture on February 1, 2017, using a fabricated patent assignment.
- Bisnoff falsely claimed backing from Apple and Roc Nation to attract investments while diverting investor funds for personal rent in Pacific Palisades, which cost up to $16,409 monthly, prosecutors said.
- Using the alias "Michelle Silverstein," Bisnoff fraudulently obtained a $150,000 COVID-19 relief loan in March 2020 and attempted to embezzle around $550,000 from an employer to repay threatening investors.
- Bisnoff faces a sentencing hearing on January 21, 2027, with victims suffering an estimated loss of around $1.4 million after she failed to pay an $836,548 judgment owed to the U.S. Securities and Exchange Commission.
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The Daily Hodl
Cryptocurrency News | Cryptocurrency Prices | Market CapCalifornia Woman Masterminds Nearly $2,000,000 Smart Ring Ponzi Scheme With Fake Apple Backing
A federal jury convicted a California woman of securities fraud and related charges for defrauding investors through a smart ring startup with false claims of patents and major corporate support.
Smart Ring CEO Told Investors Apple Backed Her and Walmart Was Buying. It Was a $2 Million Ponzi Scheme
Michelle Bisnoff was convicted of fraud after using a big-name sales pitch to raise money for a patented ring she didn’t own. Esos Rings sold just 6 on Walmart.com; 3 were returned.
Wearable tech company CEO found guilty of running $2 million Ponzi scheme
The CEO of a wearable tech company has been found guilty of running a nearly $2 million Ponzi scheme by duping investors through lies that she owned patents for smart rings that rightfully belonged to a former employer, the Department of Justice announced Friday. She was also convicted of fraudulently obtaining $150,000 in COVID-19 pandemic [...]
Esos Rings CEO Michelle Bisnoff Convicted of Nearly $2 Million Ponzi Scheme
LOS ANGELES (KEYT) – Michelle Bisnoff has been convicted of multiple financial crimes in connection with an almost $2 million Ponzi scheme related to duping investors about a wearable "smart ring" patent she didn't own as well as COVID-19 business loan fraud. The 59-year-old former resident of Pacific Palisades and Santa Barbara was convicted Thursday
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