Michelle Bisnoff Arrested for $2 Million Investor Fraud Scheme

CEO of ESOS Rings Faces Securities and Wire Fraud Charges

A Boca Raton woman was arrested today on charges of defrauding a staggering amount of over $2 million from investors, which she allegedly used for personal expenses and Ponzi payments to sustain the scheme.

Michelle Bisnoff, also known as “Michelle Angeline Silverstein” and “Shelly Silverstein,” 57, formerly of Brentwood, Pacific Palisades, and Santa Barbara, currently residing in Boca Raton, Florida, faces charges of securities fraud and wire fraud. Bisnoff has been released on bond and is scheduled to appear in United States District Court in downtown Los Angeles on August 7.

According to the affidavit supporting the criminal complaint, Bisnoff is the founder and CEO of ESOS Rings, Inc. From 2017 through the end of 2023, she allegedly solicited investments in ESOS by falsely representing the company’s business activities, profitability, and the returns investors would receive. Bisnoff purportedly claimed that ESOS owned patents for “smart rings,” a wearable device encoded with financial information for contactless payments. She further asserted that ESOS earned transaction fees each time a ring was used, generating profits for the company. Additionally, Bisnoff allegedly told investors that ESOS was manufacturing and selling these smart rings and that the company was on the verge of being acquired by Apple or another major firm, which would result in a significant buyback of investors’ shares at higher prices.

The affidavit states that neither Bisnoff nor ESOS owned the patents in question. Most of the investor funds were allegedly used to make Ponzi payments to earlier investors and for Bisnoff’s personal benefit. The purported acquirers of ESOS were unaware of the company or had no plans to invest in it. ESOS reportedly had minimal business operations and no profits.

A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Bisnoff faces a statutory maximum sentence of 40 years.

The U.S. Securities and Exchange Commission (SEC) has also sued Bisnoff and ESOS for allegedly raising $1.95 million fraudulently from investors. On September 19, 2023, United States District Judge Consuelo B. Marshall ordered Bisnoff and ESOS to pay $836,548 to the SEC, including $566,483 in disgorgement of net profits, $46,836 in pre-judgment interest, and a $223,229 civil penalty. To date, neither Bisnoff nor ESOS has paid any of the amounts due.

The Federal Bureau of Investigation is investigating the case, with substantial assistance provided by the SEC and the United States Attorney’s Office for the Southern District of Florida. Assistant United States Attorney Ranee A. Katzenstein of the Criminal Appeals Section is prosecuting the case.

Related Posts

Third Street Promenade Loses Bibibop Asian Grill

July 3, 2025

July 3, 2025

Bibibop opened at the Santa Monica location in 2017 after taking over a former ShopHouse space. Bibibop Asian Grill, a...

(Video) Legacy, Reimagined: Architecture, Design & Construction by Home Front Build Los Angeles

July 2, 2025

July 2, 2025

Go To Homefrontbuild.com For More Information @home_front_build Legacy, Reimagined: Architecture, Design & Construction by Home Front Build Los Angeles Go...

(Video) Gladstone’s Malibu Prepares for Reopening after Surviving Palisades Fires

July 2, 2025

July 2, 2025

With One Half of its Structure Slightly Charred and Undergoing Repairs, Gladstone’s Malibu is Reopening its Patio Space Just in...

Col. Eric Swenson Honored by LA for Historic Debris Removal Effort

July 2, 2025

July 2, 2025

Swenson, with a distinguished military background including a Ph.D. and multiple master’s degrees from Penn State and other institutions, has...

More Commercial Uses Could Be Coming to RAND Building

July 2, 2025

July 2, 2025

Amendment Unlocks New Opportunities, Secures $5.5 Million in Community Benefits The Santa Monica Planning Commission unanimously approved an amendment to...

(Video) ‘World’s Strongest Man’ Champion Pulls Big Blue Bus for 30 feet

July 1, 2025

July 1, 2025

World-class strongman Martins Licis pulled a 34,680‑pound, 35-feet long, battery electric bus through the Pier to set off Pier 360...

Proposed Rebuilding Authority for Wildfire Recovery Sparks Local Control Debate

July 1, 2025

July 1, 2025

Plan Aims to Streamline Rebuilding but Raises Questions Over Community Input A proposed “Resilient Rebuilding Authority” to oversee recovery from...

Marquez Students Rebuild Robots Destroyed in Fire, Shine at National and World Competitions

July 1, 2025

July 1, 2025

Community and Coaches Rally Behind Young Innovators Elementary students from Marquez Charter Elementary School rebuilt their robots after they were...

Second Victim Killed Alongside LAPD Sergeant in Brentwood 405 Crash Identified

July 1, 2025

July 1, 2025

Authorities Confirm Garcia, 34, Died at the Scene, GoFundMe Launched  Authorities have identified the civilian who was killed alongside a...

Why Nordstrom Says It’s Closing Its Santa Monica Place Location

July 1, 2025

July 1, 2025

A Nordstrom spokesperson explained the closure as a strategic realignment Nordstrom confirmed its decision to close its Santa Monica store...

People are Using Palisades for “Disaster Tours.” Local Officials Are Trying to Stop Them

June 30, 2025

June 30, 2025

A new motion introduced to City Council requests a coordinated strategy from LADOT, the Los Angeles Police Department, and the...

LAUSD Approves $604 Million Plan to Rebuild Fire-Damaged Palisades Schools

June 30, 2025

June 30, 2025

The reconstruction, set to conclude by the end of 2028, aims to restore facilities for approximately 3,620 students across the...

Free Virtual Planetarium Shows Coming to SMC in July

June 30, 2025

June 30, 2025

The virtual format is in place as construction of the new SMC Planetarium and Observatory nears completion The Santa Monica...

Six-Bed Mar Vista Hilltop Home Under Construction Lists for $5.3M

June 30, 2025

June 30, 2025

The private backyard is complete with a pool, spa, fire pit, built-in BBQ, and areas for outdoor dining A stunning...

(Video) Getty Villa Reopens Six Months After Dodging Destruction of Palisades Wildfires

June 29, 2025

June 29, 2025

With the reopening also comes a new exhibit, “The Kingdom of Pylos” Getty Villa Reopens Six Months After Dodging Destruction...