Michael Smith, a 54-year-old from North Carolina, pleaded guilty to one count of conspiracy to commit wire fraud for using AI-generated songs and bots to generate over $8 million in royalties from streaming services. The plea came before U.S. District Judge John G. Koeltl, with sentencing set for July 29.
Michael Smith admitted to producing hundreds of thousands of AI-generated songs and deploying thousands of bots to stream them billions of times across thousands of accounts on platforms including Amazon Music, Apple Music, Spotify, and YouTube Music. This method allowed him to evade detection and collect more than $8 million in royalties. He agreed to forfeit $8,091,843.64 as part of the plea, which carries a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine. The Department of Justice stated it would not pursue further charges but may examine potential tax violations from 2017 to 2024. Sentencing is scheduled for July 29 before Judge Koeltl in the Southern District of New York. U.S. Attorney Jay Clayton described the scheme: “Michael Smith generated thousands of fake songs using artificial intelligence and then streamed those fake songs billions of times... Smith’s brazen scheme is over, as he stands convicted of a federal crime for his AI-assisted fraud.” A prior Rolling Stone investigation detailed Smith's use of 1,040 accounts, each streaming about 636 songs daily, resulting in 661,440 streams per day, roughly $3,307.20 daily, $99,216 monthly, and over $1.2 million annually. U.S. Attorney Damian Williams noted at indictment: “Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed.” Smith's attorney, Noell Tin, declined to comment.
