PACIFIC PALISADES—Former Pacific Palisades resident Michelle Bisnoff, 59, has been found guilty on six counts of securities fraud, six counts of wire fraud, two counts of money laundering, one count of COVID-relief loan wire fraud, and one count of aggravated identity theft. The verdict came late Thursday, Sept. 24, after a seven-day trial, and the DOJ announced it the following day.
Bisnoff was hired by U.K.-based McLear Ltd. to build a U.S. market for its wearable rings, which let users make purchases by tapping a card reader. By early 2017, she claimed the key patent as her own, using a falsified patent assignment, and formed her company, Esos Rings Inc., to sell rings based on it.
She falsely told investors that she had backing from Apple and Roc Nation, along with a licensing deal with Middle Earth Enterprises. In reality, Esos had only sold six rings on Walmart.com, three of which were returned. Bisnoff gave investors falsified documents to spark investor interest, including financial statements and a corporate tax return.
When the promised returns didn’t come, she tried to embezzle about $550,000 from an employer to pay investors, then sent bounced checks. In total, she raised close to $2 million from investors, with victims losing about $1.4 million.
She is facing up to 20 years for each securities and wire fraud count, up to 10 years for each money laundering count, and a mandatory consecutive two-year term for aggravated identity theft. Her sentencing is set for Jan. 21, 2027.
By Milan Manesh