A North Carolina singer-songwriter is on the hook for more than $8 million in fraudulent streaming royalties racked up with AI-generated tracks and bots, Rolling Stone reports.
In US district court today, Mike Smith, 54, pled guilty to defrauding streaming services by flooding them with hundreds of thousands of AI-generated tracks and accumulating billions of plays with bots. He initially evaded detection by spreading the tracks across thousands of profiles on several streaming services including Amazon Music, Apple Music, Spotify, and YouTube Music. Smith spent years trying to build a career as a musical artist (that's his 2015 promo photo above) before launching his AI scam, which was detailed in a Rolling Stone investigation published in January.
Before before US District Judge John G. Koeltl, Smith pled guilty to one count of conspiracy to commit wire fraud. He agreed to forfeit $8,091,843.64 while awaiting sentencing on July 29. His crime carries a maximum sentence of five years in prison. A letter from the Justice Department recommends three years’ supervised release and a maximum fine of $250,000.
"Michael Smith generated thousands of fake songs using artificial intelligence and then streamed those fake songs billions of times,” Jay Clayton, US Attorney for the Southern District of New York, said in a statement. "Although the songs and listeners were fake, the millions of dollars Smith stole was real. Millions of dollars in royalties that Smith diverted from real, deserving artists and rights holders. Smith’s brazen scheme is over, as he stands convicted of a federal crime for his AI-assisted fraud."
Smith's lawyer, Noell Tin, has not commented.
