North Carolina Musician Accused of $10M Streaming Fraud With AI-Generated Songs
The musician, Michael Smith, was allegedly aided in his scheme by a number of co-conspirators as well as the CEO of an unnamed AI music company.
A North Carolina musician has been indicted by federal prosecutors over allegations that he used AI to help create “hundreds of thousands” of songs and then used the AI tracks to earn more than $10 million in fraudulent streaming royalty payments since 2017.
In a newly unsealed indictment, Manhattan federal prosecutors charged the musician, Michael Smith, 52, with three counts of wire fraud, wire fraud conspiracy and money laundering conspiracy. According to the indictment, Smith was aided by the CEO of an unnamed AI music company as well as other co-conspirators in the U.S. and around the world, and some of the millions he was paid were funneled back to the AI music company.
According to the indictment, the hundreds of thousands of AI songs Smith allegedly helped create were available on music streaming platforms like Spotify, Amazon Music, Apple Music and YouTube Music. It also claims Smith has made “false and misleading” statements to the streaming platforms, as well as collection societies including the Mechanical Licensing Collective (the MLC) and distributors, to “promote and conceal” his alleged fraud. Trending on Billboard
