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Michael Smith, a 52-year-old singer from North Carolina, has been arrested by the FBI for earning over $10 million in music-streaming royalties through a scheme that involved AI-generated tracks and fake streams.
According to an unsealed indictment, Smith published thousands of tracks weekly on streaming platforms, which were played billions of times using bot accounts he created.
Initially, Smith tried producing a large number of songs himself but later collaborated with an AI music company and a promoter to supply him with a massive volume of fake songs over seven years.
The tracks were streamed using around 10,000 fake accounts, making it appear as though legitimate listeners were tuning in from different locations.
Smith is charged with wire fraud, wire fraud conspiracy, and money laundering conspiracy, with each offense carrying a maximum sentence of 20 years imprisonment.
Prosecutors say this is the first case of its kind and emphasized that Smith’s actions deprived rightful artists and songwriters of their royalties.
US Attorney Damian Williams stated, “Smith stole millions in royalties that should have been paid to musicians and rights holders whose songs were legitimately streamed.”
Smith’s fraudulent activities involved using fake band names and AI-generated song titles, and he is now set to face legal consequences for his actions.
