Smith’s streaming fraud didn’t just hurt platforms but genuine artists who share royalty pools on streaming services, the DOJ claimed. By cutting into that pool, Smith reduced royalties across the board. Therefore, on top of serving 18 months in prison, he must forfeit the $8,091,843.64 that he claimed through his AI scheme, the court ruled.
For Smith, the outcome likely feels outsized, as a letter from his lawyers prior to sentencing urged the court that the DOJ should not be punishing one man for the “ills of an industry.” Since this is the DOJ’s first prosecution of this kind, Smith’s legal team suggested officials were making an example of Smith, while knowing that he did not actually pocket $8 million.
Instead of jail time, Smith fought for a probation sentence, noting that he was “profoundly sorry.” The DOJ disagreed, telling the court that Smith engaged in increasingly deceptive tactics to sustain his artificial streaming, lied to cops when confronted, and needed a stronger sentence for deterrence. “For years, Smith orchestrated a sophisticated fraudulent scheme that stole millions of dollars in musical royalties from rights holders,” the DOJ said.
Source: Ars Technica · Summarized by HeadlinesBriefing