Thousands of fake accounts were playing AI-generated tracks on a loop. The North Carolinian will have to repay more than $8 million in royalties received without authorisation.
Michael Smith, 54, from North Carolina, was sentenced to 18 months in federal prison followed by two years of supervised release, in a case heard by the federal prosecutor's office for the Southern District of New York. He will have to pay $8,091,843.64 in restitution. This is the first federal sentence handed down in the United States for music streaming fraud.
Bots, family subscriptions, and generated music
Between 2017 and 2024, he created thousands of fictitious accounts, often attached to family subscriptions, then launched automated software that listened to AI-generated tracks without interruption. The platforms then paid him the rights corresponding to these artificial taps.
The scale of the system is striking: in April 2023, his accounts generated 80.9 million streams in a single month. He had pleaded guilty in March 2026 to one count of conspiracy to commit wire fraud. The RIAA and the Music Fights Fraud Alliance welcomed a decision they hope will be a deterrent.
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