Skip to content
Search

Man Pleads Guilty to Defrauding Streaming Services of $8 Million With AI-Generated Songs

Mike Smith agreed to return the money he was paid in royalties as he awaits sentencing

Man Pleads Guilty to Defrauding Streaming Services of $8 Million With AI-Generated Songs

Mike Smith in 2016

Bennett Raglin/Getty Images

Michael Smith, a 54-year-old North Carolina man whom federal prosecutors accused of defrauding music-streaming services with AI-generated songs, pleaded guilty to one count of conspiracy to commit wire fraud on Thursday before U.S. District Judge John G. Koeltl. The charge carries a maximum sentence of five years in prison. Smith agreed to pay $8,091,843.64 in forfeiture. Judge Koeltl will sentence Smith in full this summer.

In the plea, Smith admitted to creating hundreds of thousands of songs using AI and, in turn, using thousands of bots to stream the songs billions of times, the way average consumers would, to make an income. By spreading the streams across thousands of accounts, he was able to evade detection by streaming services such as Amazon Music, Apple Music, Spotify, and YouTube Music. Ultimately, Smith acquired more than $8 million in royalties.


“Michael Smith generated thousands of fake songs using artificial intelligence and then streamed those fake songs billions of times,” Jay Clayton, a U.S. 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.” (An attorney for Smith, Noell Tin, declined to comment.)

A letter from the Department of Justice indicated that in addition to forfeiting his earnings and the maximum prison sentence, he could also be sentenced to three years’ supervised release and a maximum fine of $250,000. Sentencing is scheduled for July 29. The DOJ said it would not prosecute Smith further, but that it would consider tax violations between 2017 and 2024 should it discover them.

A Rolling Stone investigation into Smith revealed he was using 1,040 accounts, which would each stream around 636 of his AI-generated songs a day. That added up to 661,440 streams a day, potentially earning him $3,307.20 a day, $99,216 a month, and more than $1.2 million a year. “Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed,” U.S. Attorney Damian Williams commented when Smith was indicted.

More Stories

Ariana Grande Reschedules Three ‘Eternal Sunshine’ Tour Dates: ‘Safety, First and Foremost’

Ariana Grande rescheduled three shows on her ‘Eternal Sunshine’ tour due to production issues.

Penske Media via Getty Images

Ariana Grande Reschedules Three ‘Eternal Sunshine’ Tour Dates: ‘Safety, First and Foremost’

Ariana Grande broke the “unfortunate” news to fans on Monday and announced that three stops on her Eternal Sunshine tour have been rescheduled due to production issues.

“We are so sorry for these unfortunate scheduling changes,” Grande wrote on Instagram Stories. “This was our best and safest option, as these challenges with production have come to our attention.”

Keep ReadingShow less
SiriusXM Canada and Rolling Stone Canada Launch New Music and Culture Channel

SiriusXM Canada and Rolling Stone Canada Launch New Music and Culture Channel

Rolling Stone Canada is expanding its reach with the launch of Rolling Stone Canada on SiriusXM, a new exclusive channel created in partnership with SiriusXM Canada.

Available today on the SiriusXM app (Channel 754), the channel combines music, artist interviews, entertainment news and cultural conversation into a daily listening experience inspired by the editorial voice of the 58-year-old brand. Programming spans chart-topping hits, influential catalog favourites and emerging artists, while providing listeners with the stories and perspectives behind the music.

Keep ReadingShow less
Body of Deceased Newborn Found in Portable Restroom at Electric Forest Festival

A performance at Electric Forest Festival in 2014.

Jeff Kravitz/FilmMagic/Getty Images

Body of Deceased Newborn Found in Portable Restroom at Electric Forest Festival

The body of a newborn was discovered in a portable toilet at the Electric Forest Festival in Rothbury, Michigan this weekend.

According to the Michigan State Police, an employee of the restroom vending company discovered the body “during routine maintenance” on Sunday morning (June 28). The portable toilet was located on the festival’s campgrounds.

Keep ReadingShow less
Our Lady Peace, 30 Years On, Are Gearing Up to Fight the Machines

Raine Maida of Our Lady Peace onstage in 2025. The Canadian alt-rock band are on the road to mark a pair of album anniversaries.

Scott Legato/Getty Images

Our Lady Peace, 30 Years On, Are Gearing Up to Fight the Machines

Much like their 1990s grunge and alt-rock contemporaries in America, Canada’s Our Lady Peace were writing and recording murky, sorrowful songs about youthful frustration and adult rage, love lost and societal alienation. But there was always an underlying theme of hope throughout the larger message.

Thirty-plus years since their debut album, 1994’s Naveed, the band is soldiering on, and celebrating their three-decade longevity. On this particular night, it’s onstage at Plaza Live in Orlando, Florida, where Our Lady Peace are playing a sold-out show some 1,300 miles from their hometown of Toronto.

Keep ReadingShow less
The B-52s’ French Festival Set Canceled ‘Minutes’ Before Tornado Struck Venue

The B-52s perform SNL50 on Feb. 14, 2025.

Todd Owyoung/Peacock via Getty Images

The B-52s’ French Festival Set Canceled ‘Minutes’ Before Tornado Struck Venue

The B-52s’ appearance at Retro C Trop Music Festival in Tilloloy, France was canceled on Saturday, mere minutes before a violent storm hit the area, destroying some of the band’s gear in its wake.

“We are so sorry to everyone who came out to Chateau de Tilloloy yesterday. The storm made it impossible to continue, and the safety of our fans and everyone on site had to come first,” the B-52s posted on Facebook. “A huge thank you to our touring crew for their work and care in keeping everyone as safe as possible throughout an incredibly dangerous situation. We hope everyone got home safely.”

Keep ReadingShow less