Industry Mar 23, 2026
North Carolina Man Pleads Guilty to $10 Million AI Music Royalty Fraud
“Although the songs and listeners were fake, the millions of dollars Smith stole was real”, said US Attorney Jay Clayton
Originally published by
DJ Mag
A man from North Carolina has pleaded guilty to defrauding the music industry of $10 million through AI-generated music royalties. The scheme involved creating fake songs and listener engagement to illicitly obtain funds. US Attorney Jay Clayton emphasized that while the artists and audience were fabricated, the financial gains were substantial. Originally reported by DJ Mag.