Judge Sentences AI Music Fraudster to 18 Months in Landmark Ruling
Michael Smith, a 54-year-old musician from North Carolina, was sentenced to 18 months in federal prison on October 6, 2026, for the first-ever criminal conviction involving AI-assisted streaming fraud. Smith pleaded guilty in March to wire fraud conspiracy after admitting he used bots to generate billions of fake streams for AI-generated songs between 2017 and 2024, collecting over $8 million in royalties. Judge John G. Koeltl in Manhattan rejected the defense’s request for probation and the prosecution’s demand for 46 months, ordering Smith to serve a year and a half in jail followed by two years of supervised release. He must also forfeit $8,091,843.64. The case highlights the growing threat of automated bots inflating play counts on platforms like Spotify and Apple Music, diverting funds from legitimate artists.