US man pleads guilty to defrauding music streamers out of millions using AI
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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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AI-ExtractedSmith was charged in September 2024.
Michael Smith generated thousands of fake songs using artificial intelligence.
Smith faces up to five years in prison and the forfeiture of $8,091,843.64.
Smith fraudulently obtained more than $10m in royalty payments between 2017 and 2024.
Michael Smith pleaded guilty to conspiracy to commit wire fraud for defrauding music streamers.
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