Mercedes Reshard New, known as Shawty Dred, is accused of obtaining millions in food benefits during a nationwide enforcement surge.
ATLANTA, GA — Atlanta rapper and social media personality Mercedes Reshard New, known as Shawty Dred, has been arrested on federal charges accusing him of fraudulently obtaining more than $4 million in Supplemental Nutrition Assistance Program benefits, authorities said.
New’s case was highlighted as part of a nationwide federal enforcement operation involving nearly $42 million in alleged or proven SNAP fraud. The Justice Department said the broader effort brought actions against more than 40 defendants across several states. New, 39, was indicted by a federal grand jury Oct. 7 and arrested Oct. 13, according to the U.S. Attorney’s Office for the Northern District of Georgia.
Federal prosecutors allege that between January 2020 and July 2026, New controlled more than 350 fraudulent SNAP accounts created with stolen identities. Authorities say electronic benefit transfer cards tied to those accounts were mailed to addresses across the Atlanta metropolitan area. Prosecutors allege the Georgia Division of Family & Children Services transferred about $4.6 million in benefits to fraudulently established accounts and that about $4 million was later taken from them through EBT cards.
New also allegedly applied to have his company, Shawty Dred LLC, approved as a SNAP retailer. Federal prosecutors say that from April 2024 through November 2025, fraudulent EBT cards were used with a point-of-sale device connected to the company to obtain more than $660,000 in benefits. SNAP, which is administered nationally by the U.S. Department of Agriculture, provides food assistance to eligible low-income households.
The USDA revoked the company’s authorization to participate as a SNAP retailer in November 2025, prosecutors said. About two weeks later, local police arrested New for allegedly selling SNAP benefits at a metro Atlanta store. Officers seized 14 EBT cards issued in other people’s names, according to federal authorities. Prosecutors allege that replacement cards were then ordered and sent to New’s store and other Atlanta-area addresses.
A federal grand jury charged New with 46 counts of mail fraud, 15 counts of aggravated identity theft, one count of SNAP fraud and one count involving illegal transactions with access devices. The charges total 63 counts. An indictment is an allegation, and New is presumed innocent unless proven guilty beyond a reasonable doubt.
The case became part of a wider federal benefits-fraud initiative announced Oct. 21 by the Justice Department, the USDA and the USDA Office of Inspector General. Federal officials said enforcement actions launched between Sept. 1 and Oct. 21 involved nearly $45 million in intended losses across USDA-related programs, with nearly $42 million connected to SNAP. The operation involved 13 U.S. attorney’s offices, the Utah Attorney General’s Office and several federal, state and local law enforcement agencies.
The largest case identified in the nationwide operation involved an alleged $29.7 million SNAP scheme tied to two defendants accused of processing fraudulent EBT transactions through stores in Chicago. New’s Atlanta case accounted for an estimated $4.4 million in losses in the nationwide enforcement announcement, making it one of the larger individual cases described by the Justice Department.
Federal officials also pointed to New’s large social media presence as part of their public description of the case. Prosecutors said his Instagram account had more than 2 million followers and showed private-jet travel, luxury vehicles and large amounts of cash. Authorities allege that proceeds from the fraud helped support an expensive lifestyle, though those claims remain allegations to be tested through the federal court process.
The USDA Office of Inspector General and the FBI are investigating the Atlanta case with assistance from the Georgia Department of Human Services Office of Inspector General. Assistant U.S. Attorney Tracia M. King is prosecuting the case. Following his Oct. 13 arrest, New was remanded to the custody of the U.S. Marshals Service pending further federal court proceedings.
Author note: Last updated November 1, 2026.