California Woman Convicted in $2 Million Ponzi Scheme Involving Fake Smart Rings

A California woman has been convicted of running a nearly $2 million Ponzi scheme built around a fake smart ring company. A federal jury in Santa Ana found Michelle Bisnoff, 59, guilty of securities fraud, wire fraud, money laundering, identity theft, and COVID-relief fraud, according to NBC Los Angeles.

Prosecutors say Bisnoff, a former resident of Pacific Palisades and Santa Barbara, raised nearly $2 million for Esos Rings by falsely claiming she owned patents on wearable rings that functioned like debit cards and that major companies like Apple and Roc Nation were backing orders from Walmart and Target. In reality, she sold only six rings to Walmart, with three being returned, had no deal with Target, and never received support from Apple or Roc Nation. Instead, she used new investor money to pay earlier backers.

Trial evidence revealed that Bisnoff spent investor funds on personal expenses, including over $15,000 a month in rent, and took a $150,000 COVID relief loan under an alias for personal use. When promised returns failed to materialize, she provided a series of excuses, described by one victim as ‘dog-ate-my-homework’ excuses.

Investors lost approximately $1.4 million of the nearly $2 million she raised. Bisnoff is scheduled for sentencing on January 21, 2027, and could face up to 20 years in prison for the most serious charges.