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North Carolina Man Pleads Guilty to $8 Million Streaming Fraud Using AI-Generated Songs and Bots
Mike Smith used AI to create hundreds of thousands of songs and bots to fraudulently stream them billions of times across multiple platforms.
Mar. 21, 2026 at 11:37am
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A 54-year-old North Carolina man named Mike Smith has pled guilty to defrauding streaming platforms of more than $8 million in royalties by using AI-generated songs and bots to fraudulently stream the songs billions of times across Amazon Music, Apple Music, Spotify, and YouTube Music. Smith agreed to pay $8,091,843.64 in forfeiture and faces up to 5 years in prison when he is sentenced in July.
Why it matters
This case highlights the growing problem of AI-enabled fraud and the challenges streaming platforms face in detecting and preventing such large-scale scams. It also raises concerns about the impact on legitimate artists whose royalties were diverted to Smith's fraudulent activity.
The details
Smith admitted to creating hundreds of thousands of songs using generative AI, then using thousands of bots posing as real listeners to stream the songs billions of times across multiple platforms. He was able to avoid detection by spreading the streams across thousands of fake accounts. The Department of Justice has recommended a sentence of 3 years of supervised release and a $250,000 fine in addition to the forfeiture.
- On March 21, 2026, Mike Smith pled guilty to one count of conspiracy to commit wire fraud.
- Smith is expected to be sentenced in July 2026.
The players
Mike Smith
A 54-year-old North Carolina man who pled guilty to defrauding streaming platforms of over $8 million using AI-generated songs and bots.
John G. Koeltl
The U.S. District Judge presiding over Smith's case.
Jay Clayton
The U.S. Attorney for the Southern District of New York who commented on the case.
What they’re saying
“Although the songs and listeners were fake, the millions of dollars Smith stole was real.”
— Jay Clayton, U.S. Attorney for the Southern District of New York
“Smith's brazen scheme is over, as he stands convicted of a federal crime for his AI-assisted fraud.”
— Jay Clayton, U.S. Attorney for the Southern District of New York
What’s next
Smith is expected to be sentenced in July 2026 and faces up to 5 years in prison.
The takeaway
This case highlights the growing threat of AI-enabled fraud and the need for streaming platforms to strengthen their detection and prevention measures to protect the integrity of the music industry and the royalties owed to legitimate artists.
