North Carolina Man Arrested for $10M AI Music Fraud Scheme
Michael Smith, a 52-year-old from North Carolina, has been apprehended by the Department of Justice (DOJ) for orchestrating a complex seven-year fraud involving AI-generated music. Smith is charged with wire fraud and money laundering, each carrying a potential 20-year prison sentence.
Smith allegedly used AI to produce hundreds of thousands of fake songs and manipulated streaming platforms to inflate play counts, generating over $10 million in illegal royalties. The DOJ’s press release reveals that Smith worked with two unidentified associates—a music promoter and the CEO of an AI music company—to distribute these AI-created tracks across major platforms like Spotify, Apple Music, Amazon Music, and YouTube Music.
