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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Federal prosecutors are asking a judge to sentence Michael Smith to at least 46 months in prison for using AI-generated songs and automated accounts to manipulate music streams and collect more than $8 million in royalties. Smith pleaded guilty to conspiracy to commit wire fraud, but as of October 3, 2026, the judge had not decided his sentence; sentencing was scheduled for October 6.
What Michael Smith admitted doing
Smith, 54, of Cornelius, North Carolina, pleaded guilty on March 19, 2026, to one count of conspiracy to commit wire fraud. The U.S. Department of Justice says he created hundreds of thousands of songs with artificial intelligence, then used thousands of accounts and software to make bots stream music he owned billions of times. The streams were distributed across many songs to make activity on any single title less likely to appear unusual. The DOJ says the scheme generated more than $8 million in royalties. Smith agreed to forfeit $8,091,843.64. DOJ’s 2026 guilty-plea announcement describes the plea and forfeiture agreement.
U.S. Attorney Jay Clayton said in that announcement: “Although the songs and listeners were fake, the millions of dollars Smith stole was real.”
What sentence prosecutors want—and what is still undecided
In a report published September 30, 2026, Music Business Worldwide said prosecutors asked U.S. District Judge John G. Koeltl to impose at least 46 months in prison. The U.S. Probation Office reportedly recommended 24 months, while the defense asked for probation. These are competing sentencing positions, not the sentence imposed: sentencing was scheduled for October 6, 2026, and the judge had not ruled as of October 3. Music Business Worldwide’s sentencing report attributes the figures to sentencing filings.
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The conspiracy count carries a statutory maximum of five years in prison, according to the DOJ’s plea announcement. A maximum is the legal ceiling for the count, not a prediction of the outcome.
How the scheme could divert royalties from real artists
Streaming royalties are paid proportionately from a pool. Fraudulent plays can make a song appear to have legitimate listener activity and direct a share of that pool to the fraudster. That leaves less available for songwriters, musicians, and other rights holders whose tracks were streamed by real listeners, the DOJ explains. The cited sources do not calculate how much any particular artist lost.
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What the reported stream comparison shows
Music Business Worldwide reported that prosecutors’ sentencing letter compared April 2023 YouTube Music family-plan streams: Taylor Swift’s catalog had 9.3 million streams, while Smith’s catalog had 80.9 million. Those are figures from one comparison cited in a sentencing filing, not a general measure of streaming activity or an estimate of individual artists’ losses.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How the case changed from indictment to guilty plea
The case began publicly with an indictment announcement on September 4, 2024. At that stage, the DOJ alleged a scheme involving AI-generated tracks and bot streams, and its announcement cited more than $10 million and three charges. Those were indictment-era allegations. Smith later pleaded guilty to one conspiracy count; the DOJ’s 2026 announcement reports more than $8 million in royalties and the agreed forfeiture amount. The two dollar figures reflect different stages and descriptions of the case, not a final sentence or an individual-artist loss calculation. The DOJ’s 2024 indictment announcement records the original allegations.
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