Overview
- A federal jury in Santa Ana convicted Michelle Bisnoff on multiple counts of securities fraud, wire fraud, money laundering, identity theft, and COVID‑loan fraud, with the verdict returned Thursday.
- Prosecutors say Bisnoff raised almost $2 million by falsely claiming ownership of a smart‑ring patent and by fabricating partnerships and retail deals with companies such as Apple, Roc Nation, Target, and Walmart.
- FBI accounting found that repayments to investors largely came from other investors or loans, and prosecutors say Bisnoff diverted funds to personal expenses including a high‑rent Pacific Palisades residence.
- Bisnoff used an alias to obtain a $150,000 COVID Economic Injury Disaster Loan with fabricated financials and spent some of the loan on personal costs, which is charged as part of the criminal case.
- A 2023 SEC civil judgment ordering Bisnoff to pay $836,548 remains unpaid and Bisnoff faces sentencing on Jan. 21, 2027 with potential decades‑long statutory maximum prison terms and restitution proceedings to follow.