From Sfgate · · 1m 10s
Smart Ring CEO Guilty of Fraud
California tech CEO convicted of stealing millions from investors using fake patent claims.
In brief
California tech CEO convicted of stealing millions from investors using fake patent claims. Michelle Bisnoff, CEO of Esos Inc., was found guilty of securities fraud after misrepresenting smart ring patents to investors. Originally reported by Sfgate.
Guilty Verdict
Michelle Bisnoff, CEO of Esos Inc., was found guilty of securities fraud, wire fraud, and money laundering in federal court.
“A jury found her guilty in September of multiple counts of securities fraud, wire fraud and money laundering and one count of identity theft”
Fraudulent Funding
Bisnoff obtained $2.1 million in investor funds from 2017 to 2023 but used $775,000 to pay previous investors and $700,000 in rent.
“Out of the $2.1 million in investor funds that she obtained, Bisnoff used about $775,000 to pay off previous investors while paying over $700,000 in rent”
Failed Promises
Bisnoff promised to produce smart rings for Target, Walmart, Apple, and partner with Middle Earth Enterprises but none materialized.
“None of these deals ever materialized, the 2026 press release says”
Health Claims
Bisnoff claimed terminal cancer to avoid court but had no medical records to support the diagnosis.
“At one point, Bisnoff asked one of the unidentified investors, a doctor, to sign a letter confirming she had uterine cancer”
Business Partner Conflict
Esos’ former partner Joseph Prencipe threatened to kill Bisnoff and sought help to do so, leading to a five-year restraining order.
“After getting sued, Prencipe allegedly "threatened to kill Ms. Silverstein" and "sought the services of people to do so"”
Sentencing Date
Bisnoff’s sentencing hearing is scheduled for January 21, 2027, with potential sentences of up to 20 years in federal prison.
“A sentencing hearing for Bisnoff is scheduled on Jan. 21, 2027. Each count of securities and wire fraud carries a sentence of up to 20 years in federal prison”
The headline
Michelle Bisnoff, CEO of Esos Inc., was found guilty of securities fraud after misrepresenting smart ring patents to investors.
