Prosecutors Seek Prison Sentence In 8 Million AI Music Streaming Fraud Case

Published: 9/30/2026

Source: Music Business Worldwide — Prosecutors Seek 46-Month Sentence

Federal prosecutors are asking for at least 46 months in prison for Michael Smith, who pleaded guilty in connection with a scheme that used AI-generated songs and automated accounts to collect more than $8 million in royalties he was not entitled to receive.

Prosecutors say the operation spread artificial streams across hundreds of thousands of tracks and at times used as many as 10,000 bot accounts. They are also seeking forfeiture of approximately $8.09 million.

Smith is scheduled to be sentenced October 6. His attorneys have requested probation, and the judge will determine the sentence.

Why it matters: The criminal conduct is artificial streaming, account manipulation and royalty fraud—not the mere creation of AI music. Legitimate creators should avoid paid-stream guarantees, unexplained playlist traffic and services that conceal how listeners are acquired.

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