Overview
- Michael Smith, 54, pleaded guilty in SDNY to one count of conspiracy to commit wire fraud before U.S. District Judge John G. Koeltl.
- Prosecutors say he used AI to create hundreds of thousands of tracks and deployed bots to generate billions of plays across Spotify, Apple Music, Amazon Music, and YouTube Music.
- Court filings detail a 2017–2024 scheme that relied on more than 1,000 automated accounts, VPNs, and cloud infrastructure to evade anti-fraud systems.
- Smith agreed to forfeit $8,091,843.64; officials have alleged the scheme diverted more than $10 million in royalties, with some reports citing up to $12 million.
- The charge carries a maximum five-year sentence, and DOJ filings note potential supervised release and a fine as the music industry presses platforms to toughen fraud detection and penalties.