A federal jury in Santa Ana has convicted Michelle Bisnoff, 59, in connection with an investment fraud scheme involving her company, Esos Rings. She was found guilty of securities fraud, wire fraud, money laundering, identity theft and COVID-relief fraud.
Prosecutors said Bisnoff raised nearly $2 million from investors by claiming she owned patents for wearable rings that could function like debit cards. She also allegedly told investors that Apple and Roc Nation supported the product and that Walmart and Target had placed orders.
The claims did not reflect the company’s actual business, prosecutors said. Esos Rings sold only six rings to Walmart, three of which were returned, and had no agreement with Target. Apple and Roc Nation did not back the company. Investigators said Bisnoff used money from new investors to pay earlier investors.
Evidence presented at trial showed that investor funds were also used for personal expenses, including monthly rent of more than $15,000. Prosecutors said Bisnoff obtained a $150,000 COVID-relief loan under an alias and used it for personal purposes.
When investors did not receive the returns they had been promised, Bisnoff gave various explanations, according to the Justice Department. Prosecutors also said she later attempted to take about $550,000 from an employer and sent investors checks that could not be cashed.
Investors lost approximately $1.4 million of the nearly $2 million raised. Bisnoff is scheduled to be sentenced on January 21, 2027, and faces up to 20 years in prison on the most serious charges.
