In September 2024 we reported a startling case of fraudulent streaming, when a guileful North Carolina musician named Michael Smith was accused of fraudulently streaming AI-created songs and dishonestly collecting royalties.
We now learn that Smith has preempted his trial by pleading guilty to the fraud scheme — one count of conspiracy to commit wire fraud, for which his maximum penalty will be five years in jail. Further, he has reportedly agreed to pay 8.1 million dollars. That money will be delivered in a forfeiture process, whereby Smith simply hands over the proceeds of his crime. We also read that the trial judge might impose an additional fine of $250,000
Sentencing is scheduled for July 29.