A tech CEO from Boca Raton has been charged with securities fraud and wire fraud, accused of lying to investors and funneling millions from her company for personal use.
Michelle Bisnoff, who also operated under the names "Michelle Angeline Silverstein" and "Shelly Silverstein," was arrested on allegations that from 2017 to the end of 2023 she used her ESOS Rings, Inc., to draw over $2 million from investors, with a released bond, must appear in the United States District Court in Los Angeles on August 7. The investors were led to believe by Bisnoff, as stated in the affidavit supporting the criminal complaint, that ESOS owned patents for a profitable smart ring device meant for contactless payments and that big tech companies were looming purchasers.
The promises of fast returns on investments turned out to be hollow. According to the same affidavit, the patents did not belong to Bisnoff or ESOS, and the company had no substantial operations or profits. The indictment also revealed that purported acquirers of ESOS Rings, such as Apple, had neither knowledge of nor any intention to invest in the company.
The involvement of Bisnoff in the ESOS operations, brought to light by the Federal Bureau of Investigation, highlighted the use of investor funds for personal benefits and Ponzi-like repayments to prior investors. A judgment previously imposed by United States District Judge Consuelo B. Marshall found Bisnoff and ESOS liable for disgorging their ill-gotten gains, yet, until now, they have failed to comply with the payment of the sums due, according to the affidavit.
With the SEC also filing a lawsuit against Bisnoff and her company for fraudulently raising nearly $2 million, the case is being prosecuted by Assistant United States Attorney Ranee A. Katzenstein. If convicted of the charges, Bisnoff faces up to 40 years in prison. Public Information Officer Ciaran McEvoy has confirmed the investigation is ongoing, with substantial support from the SEC and the U.S. Attorney’s Office, Southern District of Florida.
