Atlanta rapper Shawty Dred indicted in alleged $4 million SNAP fraud, accused of using stolen identities, fake accounts and EBT cards to siphon taxpayer money and fund a lavish lifestyle

Social media personality Mercedes Reshard New, known online as Shawty Dred, has been indicted on federal charges in an alleged fraud scheme involving more than $4 million in US food assistance benefits. Prosecutors allege that the 39-year-old Atlanta resident used stolen identities to create hundreds of fraudulent accounts and fund a lavish lifestyle showcased on social media.According to the US Attorney’s Office for the Northern District of Georgia, a federal grand jury indicted New on October 7, 2026. He faces 46 counts of mail fraud, 15 counts of aggravated identity theft, and one count each of SNAP fraud and illegal transactions involving access devices. He was arrested on October 13 and remains in the custody of the US Marshals Service pending further proceedings.Shawty Dred allegedly controlled more than 350 fraudulent SNAP accountsAccording to the indictment, the alleged scheme ran from January 2020 to July 2026. Prosecutors claim New controlled more than 350 fraudulent Supplemental Nutrition Assistance Program (SNAP) accounts created using stolen identities.Investigators allege that he arranged for electronic benefit transfer (EBT) debit cards to be mailed to multiple addresses across the Atlanta metropolitan area. He also allegedly applied for his company, Shawty Dred LLC, to become an authorised SNAP retailer.Between April 2024 and November 2025, New allegedly used fraudulently obtained EBT cards and a point-of-sale device associated with his company to obtain more than $660,000 in SNAP benefits.In November 2025, the US Department of Agriculture revoked his store’s authorisation. Around two weeks later, local police allegedly arrested New at a store in the Atlanta area for selling SNAP benefits. Officers reportedly seized 14 EBT cards issued to other individuals.Prosecutors further allege that, after the cards were seized, New arranged for replacement cards to be sent to his store and other addresses around Atlanta.Prosecutors allege $4.6 million in benefits were transferredThe indictment alleges that New deceived Georgia’s Division of Family and Children Services into transferring approximately $4.6 million in SNAP benefits to fraudulently established beneficiary accounts. EBT cards were then allegedly used to siphon approximately $4 million from those accounts.SNAP is a federal programme administered by the US Department of Agriculture that provides monthly food assistance to eligible low-income households. In Georgia, the programme is administered by the Department of Human Services’ Division of Family and Children Services. Beneficiaries use EBT cards to purchase eligible food items, and selling or trading SNAP benefits is prohibited.US Attorney Theodore S. Hertzberg alleged that the money involved was intended to help struggling families afford food.“My office is fully committed to rooting out abuses of the SNAP program and holding accountable criminal con artists and scammers,” Hertzberg said in a statement, referring to the alleged misuse of taxpayer money intended to feed vulnerable Americans.FBI Atlanta Special Agent in Charge Marlo Graham also alleged that the money was used to finance a luxurious lifestyle rather than support families in need.Shawty Dred’s luxury lifestyle on Instagram and TikTokNew has more than two million followers on his Instagram account, richlifeshawtydred. According to the US Attorney’s Office, his social media posts have featured private jet travel, luxury Rolls-Royce and Maybach vehicles, and large stacks of cash.USDA Inspector General John Walk said New allegedly flaunted his lifestyle online while exploiting food assistance benefits in Georgia. Federal authorities said the case was investigated by the USDA Office of Inspector General and the FBI, with assistance from the Georgia Department of Human Services’ Office of Inspector General.Assistant US Attorney Tracia M. King is prosecuting the case.Shawty Dred is presumed innocentThe indictment contains allegations, not findings of guilt. New is presumed innocent unless and until prosecutors prove the charges against him beyond a reasonable doubt in court.The case comes as the US Department of Justice continues its efforts to investigate and prosecute alleged fraud involving federal benefit programmes. The department announced the creation of its National Fraud Enforcement Division on April 7, 2026, as part of a broader government initiative targeting fraud, waste and abuse.The proceedings against New are ongoing.You use AI every day. Now get your AI Quotient. Take the AIQ test.