Michael Smith, the North Carolina musician charged in 2024 with using AI-generated songs and bots to claim more than $10 million in streaming royalties, pleaded guilty in March 2026 to one count of conspiracy to commit wire fraud. The U.S. Department of Justice said the scheme generated more than $8 million and that Smith agreed to forfeit $8,091,843.64. Sentencing was scheduled for July 29, 2026, but the available official announcements do not confirm whether it took place or what sentence was imposed.
What happened in the case?
Federal prosecutors announced the charges against Smith on September 4, 2024. The indictment alleged that he ran a streaming-fraud scheme from about 2017 through 2024, using automated accounts to repeatedly play music he owned on Amazon Music, Apple Music, Spotify and YouTube Music. The indictment is a set of allegations; the later guilty plea is the case’s subsequent procedural development.
In its 2026 announcement, the U.S. Attorney’s Office for the Southern District of New York said Smith pleaded guilty before U.S. District Judge John G. Koeltl to one count of conspiracy to commit wire fraud. The count carries a maximum sentence of five years, according to DOJ. That maximum is not the sentence Smith received.
How prosecutors said the scheme worked
Automated accounts played the tracks
According to the indictment, Smith created large numbers of accounts on several streaming services and used software to make them play his music repeatedly. Prosecutors alleged that more than 1,000 bot accounts were active at once at the scheme’s height. They also described account creation on a much larger scale at certain points.
#1 Best Overall
- Pro performance with great pre-amps - Achieve a brighter recording thanks to the high performing mic pre-amps of the Scarlett 3rd Gen. A switchable Air mode will add extra clarity to your acoustic instruments when recording with your Solo 3rd Gen
- Get the perfect guitar and vocal take with - With two high-headroom instrument inputs to plug in your guitar or bass so that they shine through. Capture your voice and instruments without any unwanted clipping or distortion thanks to our Gain Halos
- Studio quality recording for your music & podcasts - Achieve pro sounding recordings with Scarlett 3rd Gen’s high-performance converters enabling you to record and mix at up to 24-bit/192kHz. Your recordings will retain all of their sonic qualities
- Low-noise for crystal clear listening - 2 low-noise balanced outputs provide clean audio playback with 3rd Gen. Hear all the nuances of your tracks or music from Spotify, Apple & Amazon Music. Plug-in headphones for private listening in high-fidelity
- Everything in the box: Includes Pro Tools Intro+, Ableton Live Lite, Cubase LE, and Hitmaker Expansion: a suite of essential effects, powerful software instruments, and easy-to-use mastering tools
A large AI-generated catalog helped spread activity
The indictment alleged that Smith used hundreds of thousands of AI-generated songs to support the volume of streams. Prosecutors said he distributed plays across many tracks rather than concentrating them on a few songs, making the activity appear less conspicuous on any individual track.
The 2024 DOJ announcement said the indictment attributed to Smith an estimate of approximately 661,440 streams per day and $1,207,128 in annual royalties. Those figures were an alleged projection, not an independently verified accounting of royalties actually earned. The announcement described the case as the first criminal case involving artificially inflated music streaming.
Rank #2
- The new generation of the songwriter's interface: Plug in your mic and guitar and let Scarlett Solo 4th Gen bring big studio sound to wherever you make music
- Studio-quality sound: With a huge 120dB dynamic range, the newest generation of Scarlett uses the same converters as Focusrite’s flagship interfaces, found in the world's biggest studios
- Find your signature sound: Scarlett 4th Gen's improved Air mode lifts vocals and guitars to the front of the mix, adding musical presence and rich harmonic drive to your recordings
- All you need to record, mix and master your music: Includes industry-leading recording software and a full collection of record-making plugins
- Everything in the box: Includes Pro Tools Intro+, Ableton Live Lite, Cubase LE, and Hitmaker Expansion: a suite of essential effects, powerful software instruments, and easy-to-use mastering tools
Why the royalty pool matters
Streaming royalties are not generally a simple fixed payment for every play. The indictment describes royalties as being allocated proportionately from platform revenue pools according to reported streaming activity. It discusses composition royalties for songwriters, including digital mechanical royalties collected and distributed through the Mechanical Licensing Collective, as well as separate sound-recording royalty pools for artists, labels or distributors. The details can vary by service and royalty type.
Under that general pool-based model, fraudulent streams can make an account’s reported activity claim a larger share of funds, leaving less for legitimate songwriters and recording artists. The indictment described this diversion as part of the alleged harm. DOJ U.S. Attorney Damian Williams said in the 2024 charging announcement: “As alleged, Michael Smith fraudulently streamed songs created with artificial intelligence billions of times in order to steal royalties.”
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Rank #3
- Value-packed 2-channel USB 2.0 interface for personal and portable recording.
- 2 high-quality Class-A mic preamps make it easy to get a great sound.
- 2 high-headroom instrument inputs to record guitar, bass, and your favorite line-level devices, plus MIDI I/O.
- Studio-grade converters allow for up to 24-bit/96 kHz recording and playback.
- Comes with over 1000 dollar worth of recording software including Studio One Artist, Ableton Live Lite, and Studio Magic Plug-In suite.
Why the amount changed from $10 million to more than $8 million
The figures come from separate DOJ announcements at different stages of the case. The September 2024 charging announcement said the alleged conduct resulted in more than $10 million in royalties. The March 2026 guilty-plea announcement instead reported more than $8 million in royalties and said Smith agreed to pay $8,091,843.64 in forfeiture. The official announcements cited here do not reconcile the two figures, so they should not be treated as interchangeable or as a single final accounting.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known about sentencing?
The March 19, 2026 DOJ announcement scheduled sentencing for July 29, 2026. It does not establish that the hearing occurred or that a sentence was imposed. No sentencing outcome is confirmed in the official materials cited here, so the case’s final punishment cannot be stated on that basis.
Quick Recap
Best Value
- ✔️[High-fidelity sound quality, accurate sampling] The Synido 2x2 audio interface uses a high-quality independent audio chip to reduce recording latency, support 24-bit depth and 48kHz sampling rate, and ensure every detail is restored. Whether it is recording or live broadcasting, it can provide a clear and natural sound quality experience
- ✔️[Three monitoring modes, easy to switch] The audio interface provides three monitoring modes to meet different needs. In Stereo mode, independent left and right channels present the original input (such as a microphone or instrument), which is suitable for accurate recording. Mix mode can mix input audio and computer audio in real-time, which is suitable for live broadcast or recording, and is easy to adjust instantly. USB mode only monitors computer audio, which is suitable for post-editing or audio processing. Whether it is recording, live broadcast, or post-production, the three modes can be easily switched to make audio creation more efficient and professional
- ✔️[User-friendly design] The audio interface is intuitively designed, and equipped with three independent control areas, and the XLR interface supports 6.35mm and XLR microphones, which are compatible with various devices. The green, orange, and red LED lights display the volume level, helping you to grasp the volume status at any time and avoid distortion. Supports easy switching between Line In and instrument input, adapts to different devices, reduces interference and distortion, and does not need to adjust gain frequently, improving efficiency
- ✔️[Professional 48V phantom power] Synido audio interface is equipped with 48V phantom power switch and supports 48V dynamic microphone with excellent noise reduction performance, provides a highly sensitive recording experience, accurately picks up sound, and effectively reduces noise interference, ensuring clear and stable sound quality output
- ✔️[Lightweight and portable, plug and play, create at any time] The USB audio interface weighs only 300g and measures 14 x 11.5x 4.5 cm. It is compact and portable and can be taken anywhere anytime. Equipped with a 3.5mm to 6.35mm adapter and a USB-C to USB-A data cable, you can easily use it by directly connecting to your mobile phone or computer
Rank #4
- Podcast, Record, Live Stream, This Portable Audio Interface Covers it All - USB sound card for Mac or PC delivers 48kHz audio resolution for pristine recording every time
- Be ready for anything with this versatile M-AUDIO interface - Record guitar, vocals or line input signals with one combo XLR / Line Input with phantom power and one Line / Instrument input
- Everything you Demand from an Audio Interface for Fuss-Free Monitoring - 1/8" headphone output and stereo RCA outputs for total monitoring flexibility; USB/Direct switch for zero latency monitoring
- Get the best out of your Microphones - M-Track Solo’s transparent Crystal Preamp guarantees optimal sound from all your microphones including condenser mics
- The MPC Production Experience - Includes MPC Beats Software complete with the essential production tools from Akai Professional
Sources
- U.S. Attorney’s Office, Southern District of New York: 2024 charging announcement
- Indictment filed in 2024
- U.S. Attorney’s Office, Southern District of New York: March 19, 2026 guilty-plea announcement
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
