# Smart Ring CEO Guilty of Fraud

> California tech CEO convicted of stealing millions from investors using fake patent claims.
- Title: Smart Ring CEO Guilty of Fraud · Sfgate | Shortify
- Summary: California tech CEO convicted of stealing millions from investors using fake patent claims. Michelle Bisnoff, CEO of Esos Inc., was found guilty of…
- Keywords: michelle bisnoff, esos inc, smart rings, securities fraud, walmart, target, apple, middle earth enterprises, federal court, wire fraud, money laundering, news
- Source: Sfgate — https://sfgate.com/bayarea/article/california-tech-ceo-fraud-22458319.php
- Read time: 1 min
- Topics: michelle bisnoff, esos inc, smart rings, securities fraud, walmart, target, apple, middle earth enterprises, federal court, wire fraud, money laundering, news
## 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
## Key takeaway

Michelle Bisnoff, CEO of Esos Inc., was found guilty of securities fraud after misrepresenting smart ring patents to investors.