Overview
- Michael Smith, 54, pleaded guilty in the Southern District of New York to one count of conspiracy to commit wire fraud tied to an AI-driven scheme.
- Prosecutors say he uploaded hundreds of thousands of AI-generated tracks and used thousands of automated accounts to produce billions of fake plays across Spotify, Apple Music, Amazon Music, and YouTube Music.
- The operation ran from 2017 to 2024 and relied on tactics such as VPNs, bulk email registrations, and spreading activity across many tracks to evade detection.
- He faces a maximum of five years in prison; DOJ filings note potential supervised release, a fine of up to $250,000, and possible ancillary tax inquiries.
- While the plea agreement orders $8,091,843.64 in forfeiture, some filings and reports have cited higher totals—over $10 million and up to $12 million—reflecting unresolved accounting differences.