A federal judge sentenced Michael Smith to 18 months in prison for a scheme that pumped up streaming numbers with thousands of fake accounts and AI‑created tracks that mimicked popular artists like Taylor Swift. The Department of Justice (DOJ) says the fraud siphoned royalties from real musicians who share the same payment pool on services such as Spotify and Apple Music. Smith must also forfeit the $8,091,843.64 he earned from the illegal activity.
How the scheme worked
Smith set up about 10,000 bot accounts that repeatedly streamed AI‑generated songs designed to sound like current hits. Each stream generated a tiny royalty payment, but the sheer volume added up to millions. Because streaming platforms calculate payouts from total streams across all users, the fake plays reduced the share that legitimate artists receive.
Why it matters
For music fans, the case shows that artificial streams can shrink the royalties that go to real artists, meaning less money for the songs you love. It also signals that authorities are willing to pursue harsh penalties, which may deter similar scams in the future.
