Prosecutors sought 46 months for North Carolina man over AI-generated songs streamed by bots to steal royalties
A North Carolina man pleaded guilty to conspiracy to commit wire fraud over a scheme in which he used AI to create thousands of fake songs. He then streamed them billions of times with bot accounts on platforms including Spotify, Apple Music, Amazon Music and YouTube Music. Prosecutors said he took more than $8 million in unearned royalties, from pools meant for legitimate artists and rights holders, over more than six years. He agreed to forfeit $8,091,843.64. Prosecutors asked for at least 46 months in prison, and sentencing is set for Oct. 6 in Manhattan federal court.
What the AI did
A person used AI to create thousands of fake songs, which were then streamed billions of times by bot accounts to collect royalties. It has not been reported which AI tool was used.
First reported September 30, 2026 · Added to the register September 30, 2026 · 1 source
- Unearned royalties taken
- More than $8 million
- Deployer
- Michael Smith
- Affected
- Real artists and rights holders
- Country
- United States (North Carolina)
- When it happened
- Not stated in the sources
- First reported
- September 30, 2026
What this means for you
Could this affect you?
Streaming platforms and the artists, labels and rights holders paid from shared royalty pools were exposed, because fake AI-made tracks and bot streams can shrink the share that goes to legitimate artists.
What to check
- Detect AI-generated catalogs paired with artificially inflated stream counts.
- Verify the identities of uploaders.
- Claw back royalties when fraud is found.
Areas of your AI programme this touches
Every fact and its source (7)
- Sentence sought by prosecutorsAt least 46 months in prison“sentence Michael Smith to at least 46 months behind bars”[1]
- Probation office recommendation24 months in prison“Federal probation officials are recommending 24 months in prison.”[1]
- Sentencing dateOct. 6, Manhattan federal court“Smith’s sentencing is set for Oct. 6 in Manhattan federal court.”[1]
- Streams for Smith's catalog in April 2023 (YouTube Music family plans)80.9 million“while Smith’s catalog generated 80.9 million”[1]
- Platforms targetedApple Music, Spotify, Amazon Music, YouTube Music“platforms including Apple Music, Spotify, Amazon Music, and YouTube Music”[1]
- Guilty pleaOne count of conspiracy to commit wire fraud“pleading guilty to one count of conspiracy to commit wire fraud”[1]
- Forfeiture agreed$8,091,843.64“He also agreed to pay $8,091,843.64 in forfeiture.”[1]
Sources
- Feds Want 46 Months Prison for AI Music Fraudster Who Stole Millions rollingstone.com · September 30, 2026
How this record is classified. Severity N: a legal action or test finding, not a harm. Evidence: Confirmed, meaning a company, official or court statement.
The facts in At a glance and in Every fact and its source are quoted from the sources listed. The summary, What the AI did and What this means for you are written from those sources and reviewed by an editor before publication. Records reflect what has been disclosed, not everything that has happened.
