Streaming fraudster Michael Smith sentenced to 18 months in prison
Michael Smith has been sentenced to 18 months in prison for a streaming fraud scheme that generated more than $8 million in royalties. The Music Fights Fraud Alliance backed calls for a meaningful punishment, highlighting the damage fake streams cause to legitimate artists and songwriters.
Michael Smith has been sentenced to 18 months in prison after using AI-generated music and automated bots to fraudulently generate more than $8 million in streaming royalties.
The sentence was handed down on October 6 by a US federal court in New York. After pleading guilty to conspiracy to commit wire fraud earlier this year, Smith was ordered to forfeit the $8,091,843.64 of fraudulent royalties he gained. He will also serve two years of supervised release.
How did we get here?
Earlier this year, it was revealed that Smith ran his scheme from 2017 to 2024. He created thousands of fraudulent streaming accounts and used automated software to repeatedly play hundreds of thousands of AI-generated tracks, generating billions of fake streams.
Prosecutors called for a prison sentence of at least 46 months, arguing that the case needed to deter others from attempting similar schemes. The final sentence was eventually shorter, but the decision to impose prison time has been welcomed by music industry organisations seeking stronger action against streaming fraud.
Music Fights Fraud Alliance calls for stronger deterrents
The Music Fights Fraud Alliance (MFFA) played an important role in the case, submitting a letter to the court ahead of Smith’s sentencing. It argued that the punishment should reflect the scale of the fraud and send a clear message about the legal consequences of manipulating streaming figures.
The MFFA challenged the defence’s argument that Smith’s scheme had caused no meaningful harm to individual artists and songwriters. It stressed that fraudulent streams divert royalties away from genuine artists, making streaming fraud far from a victimless crime.
The alliance also warned that streaming fraud persists partly because some perpetrators believe the legal risks are low. While streaming services and music companies continue investing in fraud detection, the alliance argued that stronger legal consequences are also needed to deter future offenders.
Here at RouteNote, we recently joined the MFFA to help tackle streaming fraud across the industry. Smith’s sentencing underlines why that shared effort matters, with distributors, streaming platforms and rights organisations working together to protect legitimate creators.
Why streaming fraud matters for independent artists
Streaming fraud doesn’t just inflate play counts. It can also take money away from the artists and songwriters who genuinely earned it.
Streaming royalties are distributed from a shared revenue pool. When fraudulent streams are counted alongside legitimate listening, they can dilute the value of genuine streams and divert a share of royalties towards those manipulating the system. That ultimately impacts artists whose music is legitimately streamed.
For independent artists and labels, this makes streaming fraud an industry-wide issue rather than a problem affecting only the platforms. Every royalty payment should reflect genuine listening, helping ensure that artists are rewarded for the music people actually choose to hear.
A significant step towards fairer streaming
Michael Smith’s 18-month prison sentence sends a clear message that deliberately manipulating streams to obtain royalties can carry serious legal consequences. It also reinforces the need for continued investment in fraud prevention, detection and enforcement.
The case won’t end streaming fraud overnight, but it represents an important step towards protecting artists, songwriters and the wider music ecosystem. Alongside streaming services, distributors and organisations such as the MFFA, RouteNote is committed to supporting a fairer environment where royalties reach the creators who earn them.
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