Michael Smith Sentenced to 18 Months in Streaming Fraud Case

Michael Smith was sentenced to 18 months in federal prison on October 6 for a streaming-fraud scheme involving bots and AI-generated music, and was ordered to forfeit $8,091,843.64. U.S. District Judge John G. Koeltl also imposed two years of supervised release after Smith’s prison term. Smith pleaded guilty in March to one count of conspiracy to commit wire fraud. Prosecutors said Smith carried out the scheme from 2017 to 2024, using thousands of fake accounts and automated software to stream music repeatedly and collect royalties. Their account was that he first used bots to increase plays of his own music, then uploaded AI-generated songs to generate further streams. The reports describe the case as the first federal criminal prosecution of its kind in the United States. Prosecutors said the scheme generated more than $8 million in royalties. The court’s forfeiture order was based on an $8,091,843.64 loss figure that the prosecution and defense agreed to, according to reporting on the sentencing.