A federal court handed down an 18-month prison sentence to a man convicted of operating an AI-enabled music-streaming scheme, marking the first American case of its kind, according to a Department of Justice press release. The sentencing also includes a court-ordered forfeiture of more than eight million dollars, reflecting the scale of the illicit earnings.
The defendant began the operation in 2017, creating thousands of fraudulent user profiles on platforms such as Amazon Music, Apple Music, Spotify and YouTube Music. He employed fabricated email addresses and debit cards that had been obtained illegally, allowing him to open the accounts without detection for seven years before authorities intervened in 2024.
Using custom software, the scheme deployed automated bots that continuously played songs the defendant claimed ownership of, though the tracks were generated by artificial intelligence. By the time of his arrest, he had produced hundreds of thousands of AI-created recordings and dispersed billions of streams across them, a tactic designed to avoid triggering platform monitoring systems.
The volume of fabricated plays far outstripped legitimate hits. In April 2023, the fraudulent tracks amassed 80.9 million streams, while the entire catalog of a leading pop artist recorded only 9.3 million streams during the same month, illustrating how the bot network eclipsed even the most popular releases.
The Department of Justice argued that the scheme siphoned revenue from the collective royalty pool that supports legitimate artists, reducing payouts across the board. As a result, the court ordered the defendant to surrender $8,091,843.64, the amount the DOJ said he collected through the illegal streaming operation.
Smith’s attorneys submitted a pre-sentencing letter contending that the government was using him as an example to address broader industry problems, noting that he had not personally kept the full sum. They requested a probationary sentence, citing the defendant’s remorse and a job offer that would pay $5,000 per month for audio production work.
The Justice Department rebutted the defense’s arguments, stating that the defendant repeatedly employed deceptive tactics, lied to investigators when questioned, and that a custodial sentence was necessary to deter similar abuses. The DOJ emphasized that the punishment reflects the seriousness of manipulating streaming platforms with AI and bot technology.