18 hrs ago
Man Sentenced for AI Music Streaming Fraud Scheme
Michael Smith used fake accounts to play songs he owned on music-streaming services.
Prosecutors said many of the songs were made with AI, and bots played them billions of times.
Streaming services pay royalties when songs are played, so the fake plays earned Smith money.
He spread the plays across many songs to make the activity harder to spot.
Prosecutors said the scheme lasted from 2017 to 2024 and brought in more than $8 million.
Smith pleaded guilty to conspiracy to commit wire fraud.
He was sentenced to 18 months in prison and two years of supervised release.
He must also give up more than $8 million.
The case announcement used the phrase “super intelligence” for AI, following a recent executive order described in the article.
Michael Smith, 54, was sentenced to 18 months in prison for a streaming royalty fraud scheme.
Prosecutors said the scheme ran from 2017 to 2024 and involved fake accounts on major music platforms.
Smith used AI-generated songs and up to 10,000 bot accounts to create billions of streams, prosecutors said.
He was ordered to forfeit $8,091,843.64 and serve two years of supervised release.
In April 2023, prosecutors said his bots generated 80.9 million YouTube Music family-plan streams, compared with 9.3 million for Taylor Swift’s catalogue.
- Who
- Michael Smith, 54, was sentenced after pleading guilty to conspiracy to commit wire fraud.
- What
- He used fake streaming accounts to play AI-generated songs he owned and collect royalties.
- Where
- On streaming platforms including Amazon Music, Apple Music, Spotify and YouTube Music.
- When
- The scheme ran from 2017 to 2024; Smith was sentenced Tuesday, according to the article.
- Why
- Prosecutors said Smith used fake streams to obtain royalty payments.
Prosecutors’ account
Smith’s account
Purpose and impact of the scheme
Prosecutors’ account
Prosecutors said Smith defrauded streaming platforms and musicians by using automated streams to divert royalty payments from genuine artists and rights holders.
Smith’s account
The article does not report a competing account from Smith; it says he pleaded guilty to conspiracy to commit wire fraud.
Technology terminology
Prosecutors’ account
The Justice Department announcement called the case “Super Intelligence-Assisted Music Streaming Fraud” and used “super intelligence” for AI.
Smith’s account
The article notes that this wording followed an executive order directing federal agencies to use “Super Intelligence” and “SI” instead of “Artificial Intelligence” and “AI.”
Key facts
- Sentence
- 18 months in prison and two years of supervised release
- Forfeiture
- $8,091,843.64
- Guilty plea
- March 19, 2026, to one count of conspiracy to commit wire fraud
- Scheme period
- 2017–2024
- Bot accounts
- Prosecutors said Smith used as many as 10,000 at once
- April 2023 comparison
- 80.9 million streams for Smith’s music versus 9.3 million for Taylor Swift’s catalogue on YouTube Music family plans
- Platforms named
- Amazon Music, Apple Music, Spotify and YouTube Music
Quotes
Jamie McDonald
US attorney who commented on Smith’s fraud case.
“Michael Smith exploited super intelligence technology to generate a fraud. By flooding music streaming platforms with automated bots in the place of consumers, and fake songs in the place of creativity, Smith robbed millions in royalty payments from genuine artists and their fans. This Office is committed to ensuring the integrity of all markets, and protecting the public from those who use super intelligence for fraud.”
NDTV
Sources
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