# Prosecutors seek 46 months prison for Michael Smith over $8M AI music fraud

Digest AI · Policy & Regulation · published 2026-10-04T00:02:37Z

Canonical: https://digestai.news/story/prosecutors-seek-46-months-prison-for-michael-smith-over-8m-ai-music-f

## Summary

Federal prosecutors in Manhattan are urging a judge to impose at least 46 months in prison on Michael Smith for a six‑year scheme that used AI‑generated tracks and bot accounts to inflate streams on Spotify, Apple Music, Amazon Music and YouTube Music. The fraud produced 80.9 million streams from YouTube Music family‑plan subscribers in April 2023, compared with 9.3 million streams for Taylor Swift’s entire catalog that month, and generated more than $8 million in royalties that were diverted from legitimate artists and rights holders.

Smith, 54, pleaded guilty in March to conspiracy to commit wire fraud and agreed to forfeit $8,091,843.64. While his lawyers argue for probation, citing the diffuse nature of the losses, prosecutors say the scale and duration of the scheme merit incarceration at the bottom of the federal sentencing guideline range of 46‑57 months. The judge is scheduled to sentence him on Oct 6, and the conspiracy charge carries a maximum five‑year term.

## Key points

- Prosecutors ask Manhattan judge to impose at least 46 months prison for Michael Smith's AI music streaming fraud
- Smith's scheme generated 80.9 million fraudulent streams and earned over $8 million in royalties
- Smith pleaded guilty, will forfeit $8,091,843.64; sentencing set for Oct 6 with guidelines 46‑57 months

## Why it matters

The case shows how AI‑generated content can be weaponized to exploit streaming royalty systems, prompting tighter oversight and legal scrutiny of digital music fraud.

## Sources

1. [Prosecutors Want Nearly 4 Years in Prison for Man Behind $8M AI Music Streaming Scam](https://lawcommentary.com/articles/ai-music-streaming-scam-8-million-royalties-prison) (lawcommentary.com, 2026-10-04)

## Cite

Digest AI, "Prosecutors seek 46 months prison for Michael Smith over $8M AI music fraud", 4 October 2026, https://digestai.news/story/prosecutors-seek-46-months-prison-for-michael-smith-over-8m-ai-music-f

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