Federal prosecutors are asking a judge to sentence Michael Smith to at least 46 months in prison for using AI-generated songs and bot accounts to produce billions of fraudulent streams and collect more than $8 million in royalties, according to the U.S. Attorney’s Office and a report on the sentencing filings. As of October 3, 2026, the judge had not ruled; sentencing was scheduled for October 6.
What Michael Smith pleaded guilty to
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 using artificial intelligence, then used thousands of accounts and software to make bots stream songs he owned billions of times. Spreading the activity across many tracks helped keep streams on any one song from appearing unusually high.
DOJ says the scheme generated more than $8 million in royalties. Smith agreed to forfeit $8,091,843.64. That is the agreed forfeiture amount, not a finding that any one artist lost that sum.
The conspiracy count carries a statutory maximum of five years in prison. That is the legal ceiling, not the sentence prosecutors requested or a sentence already imposed. The court determines the actual sentence.
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What sentence prosecutors want—and what remains undecided
In a September 30, 2026 report, Music Business Worldwide reported that prosecutors asked U.S. District Judge John G. Koeltl for at least 46 months in prison. The defense sought probation, while the U.S. Probation Office reportedly recommended 24 months. Those are different positions submitted in the sentencing process, not a ruling. Sentencing was scheduled for October 6, 2026, and no sentence had been announced as of October 3.
How fraudulent streams can divert royalties
Streaming royalties are paid proportionately from a pool. According to DOJ, fake plays can make a track appear to have legitimate listener activity and direct part of that pool to the fraudster, leaving less for songwriters, musicians, and other rights holders whose music real listeners streamed.
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The available case account explains the mechanism but does not calculate a specific loss for any individual artist. It would be inaccurate to say that a named artist lost a particular amount based on the figures in the case.
What the Taylor Swift comparison does—and does not—show
Music Business Worldwide reported a comparison from prosecutors’ sentencing letter for YouTube Music’s family plan in April 2023: Taylor Swift’s catalog had 9.3 million streams, while Smith’s catalog had 80.9 million. Those figures illustrate the scale prosecutors cited in that specific service-and-month comparison. They are not a general estimate of streaming activity across platforms or periods.
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How the case changed from indictment to sentencing
| Date and stage | What was reported |
|---|---|
| September 4, 2024: indictment announcement | DOJ announced charges alleging a scheme involving AI-generated music and bot streams, with more than $10 million at issue. These were indictment-era allegations and included three charges. DOJ’s 2024 announcement is available at justice.gov. |
| March 19, 2026: guilty plea | Smith pleaded guilty to one conspiracy count. DOJ’s plea announcement reported more than $8 million in royalties and an agreed forfeiture of $8,091,843.64. The announcement is available at justice.gov. |
| September 30, 2026: sentencing positions reported | Prosecutors sought at least 46 months; the defense sought probation; the Probation Office reportedly recommended 24 months. Sentencing remained scheduled for October 6, according to Music Business Worldwide. |
The 2024 figure and charges describe the initial indictment, not the later plea. The plea resolves the case as to one conspiracy count, and the 2026 DOJ announcement gives the later royalty and forfeiture figures.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the case matters beyond one catalog
DOJ’s central point is that streamed plays can affect how a shared royalty pool is distributed. U.S. Attorney Jay Clayton said in the 2026 guilty-plea announcement: “Although the songs and listeners were fake, the millions of dollars Smith stole was real.”
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