Judge Sentences First Music Streaming Fraud Convict to 18 Months
Michael Smith, the first individual federally charged for music streaming fraud, was sentenced to 18 months in prison on October 6, 2026. Smith, a North Carolina musician, pleaded guilty in March to conspiracy to commit wire fraud after using bots and AI-generated songs to generate over $8 million in fake royalties between 2017 and 2024. Judge John G. Koeltl imposed the sentence, which is significantly lower than the 46 months sought by prosecutors but higher than the probation requested by Smith’s defense. Smith must also forfeit $8.09 million. The case highlights the growing threat of AI-assisted fraud in the music industry, though industry groups argue structural reforms are needed beyond individual prosecutions.