US man pleads guilty to defrauding music streamers out of millions using AI

The Guardian - World News Legal & JudicialNews ReportEN 3 min read 100% complete by Edward Helmore in New YorkMarch 21, 2026 at 04:14 PM

AI Summary

medium article 3 min

Michael Smith, a North Carolina man, pleaded guilty in New York to conspiracy to commit wire fraud for defrauding music streaming services. Between 2017 and 2024, Smith used AI to generate thousands of fake songs and employed bots to artificially inflate streams, amassing up to 661,440 streams daily. This scheme allowed him to fraudulently obtain over $10 million in royalty payments, diverting funds from legitimate artists. The US Attorney stated that Smith stole millions of dollars in royalties that should have been paid to musicians, songwriters, and other rights holders. Smith faces up to five years in prison and the forfeiture of over $8 million at his sentencing in July.

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Framing Angle
Legal & Judicial
Primary framing
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Secondary framing
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Key Claims (5)

AI-Extracted

Smith was charged in September 2024.

factual — null100% confidence

Michael Smith generated thousands of fake songs using artificial intelligence.

quote — Jay Clayton, US attorney100% confidence

Smith faces up to five years in prison and the forfeiture of $8,091,843.64.

factual — null100% confidence

Smith fraudulently obtained more than $10m in royalty payments between 2017 and 2024.

factual — null100% confidence

Michael Smith pleaded guilty to conspiracy to commit wire fraud for defrauding music streamers.

factual — null100% confidence
Claims are automatically extracted and should be independently verified. Attribution indicates the stated source of the claim.

Keywords

ai fraud 90% music streaming 80% artificial intelligence 70% royalty payments 70% music industry 60% wire fraud 60% fake music 50% automated bots 50% copyright holders 40%

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Very Negative
Score: -0.60

Source Transparency

Source
The Guardian - World News
Article Type
News Report
Classification Confidence
90%
Geographic Perspective
United States

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