Smart Ring CEO Convicted of $2 Million Ponzi Scheme

Michelle Bisnoff, the former chief executive of a California-based wearable technology company, has been convicted of running a Ponzi scheme that defrauded investors out of nearly $2 million. Bisnoff falsely claimed her company's smart rings had the backing of Apple and Jay Z's Roc Nation, and that she had secured retail agreements with major chains like Walmart and Target.

A jury in federal court in Santa Ana found Bisnoff, 59, guilty on multiple counts of securities and wire fraud, money laundering, and aggravated identity theft. She also faced charges for a $150,000 COVID-relief loan, with prosecutors alleging she used some of those funds for personal expenses, including significant rent payments.

Bisnoff was initially hired in 2016 by London-based McLear Ltd. to develop the U.S. market for its patented NFC smart rings. However, after her termination, Bisnoff launched her own company, Esos Rings Inc., in 2017. She then solicited investments by claiming ownership of the smart ring patent.

Prosecutors stated Bisnoff promised investors substantial profits through share buybacks. Instead, the majority of investor funds were allegedly used for her personal benefit and to make Ponzi-style payments to earlier investors. By 2022, Esos Rings had raised $1.95 million. Bisnoff claimed the company was profitable and needed capital for manufacturing and inventory to meet demand from Walmart and Target. In reality, Esos Rings sold only six units on Walmart.com, with three being returned.