Music Streaming Fraudster Sentenced to 18 Months in Prison

Key Points:

• Mike Smith, the first individual federally charged with music streaming fraud, was sentenced to 18 months in prison and two years of supervised release after pleading guilty to conspiracy to commit wire fraud, with an $8 million forfeiture included in his plea deal.
• Prosecutors accused Smith of using bots to artificially inflate streams of his own and AI-generated music between 2017 and 2024, resulting in millions of dollars in unearned royalties, and sought a 46-month sentence to deter similar crimes.
• Smith admitted guilt in court, expressing remorse for betraying the music community and failing as a husband and father, while his defense argued that legal ambiguities and the prevalence of streaming fraud should mitigate his sentence.
• The defense also highlighted Smith's cooperation, personal character, and support from music industry peers like RZA, who vouched for his positive contributions and urged leniency to avoid separating him from his six children.
• Prosecutors countered that Smith knowingly committed fraud and lied for financial gain, emphasizing the importance of meaningful punishment to uphold justice and protect artists' royalties.