Atlanta Rapper Charged in $42M SNAP Fraud Investigation

WHO:

Rolling Stone Music - Atlanta rapper and social media personality Shawty Dred is allegedly connected to more than 500 electronic benefit transfer (EBT) fraud incidents in Georgia.

International Business Times UK - Mercedes New, 39, is known online as Shawty Dred and is an Atlanta-based rapper and social media personality.

International Business Times UK - Federal prosecutors accused New of obtaining millions of dollars in Supplemental Nutrition Assistance Program (SNAP) benefits through fraudulent accounts.

International Business Times UK - Vice President JD Vance, Attorney General Todd Blanche, Justice Department officials, and U.S. Department of Agriculture representatives discussed the wider enforcement effort at a news conference in Cincinnati.

AllHipHop - Shawty Dred faces 63 federal counts in an alleged SNAP scheme.

WHAT:

International Business Times UK - Prosecutors allege New controlled more than 350 fraudulent SNAP accounts, caused approximately $4.6 million in benefits to be transferred to fraudulent accounts, and siphoned about $4 million from them.

International Business Times UK - New allegedly used fraudulently obtained EBT cards and a point-of-sale device associated with his company, Shawty Dred LLC, to obtain more than $660,000 in SNAP benefits.

International Business Times UK - The Justice Department said enforcement actions targeted more than 40 defendants and involved nearly $45 million in intended losses, including nearly $42 million linked to alleged or proven SNAP fraud.

International Business Times UK - The USDA revoked Shawty Dred LLC’s SNAP retailer authorization.

International Business Times UK - New has more than two million Instagram followers. The Justice Department said he was arrested on suspicion of selling SNAP benefits and that officers seized 14 EBT cards issued to other people.

International Business Times UK - New has been indicted; the article states that the charges remain allegations and that he is presumed innocent unless proven guilty.

AllHipHop - Prosecutors announced the alleged $4 million SNAP scheme.

WHERE:

International Business Times UK - The alleged EBT-card mailings went to addresses around metro Atlanta; the case involved Georgia SNAP accounts.

International Business Times UK - Federal officials discussed the crackdown at a news conference in Cincinnati.

AllHipHop - The case was described as involving federal charges.

WHEN:

International Business Times UK - The alleged fraudulent accounts were created between January 2020 and July 2026.

International Business Times UK - New allegedly used the cards and point-of-sale device between April 2024 and November 2025.

International Business Times UK - The article says New was arrested in 2022 after allegations that he exposed himself and urinated from his apartment balcony.

International Business Times UK - The article says local police arrested New on suspicion of selling SNAP benefits in November 2025.

AllHipHop - Prosecutors announced the case on October 21.

WHY:

International Business Times UK - Prosecutors allege that New used money from the scheme to fund a lavish lifestyle, including private-jet trips, luxury vehicles, jewelry, and stacks of cash.

International Business Times UK - Vance said, “SNAP exists to help hungry children eat; it does not exist to provide private jets to a guy like Shawty Dred.”

International Business Times UK - Blanche said, “Two hundred twenty thousand Americans could've eaten for the entire month of October if it were not for this $42 million in fraud.”

HOW:

International Business Times UK - Prosecutors allege New arranged for EBT cards to be mailed to addresses around metro Atlanta and applied for Shawty Dred LLC to become an authorized SNAP retailer.

International Business Times UK - Investigators said phone numbers associated with New contacted Georgia’s SNAP benefits phone system more than 9,000 times and accessed more than 350 accounts.

International Business Times UK - The Justice Department cited New’s social-media posts displaying wealth; Vance said investigators compared his apparent luxury spending with money allegedly obtained through the scheme.

(UPDATED October 22, 2026 23:07 UTC)

Atlanta rapper and social media personality Mercedes New, known as Shawty Dred, faces 63 federal counts in an alleged scheme to steal millions in SNAP benefits. Prosecutors say he controlled more than 350 fraudulent accounts, directing about $4.6 million into them and siphoning roughly $4 million. They allege he also used fraudulent EBT cards and a point-of-sale device tied to his company to obtain more than $660,000 in benefits. Investigators say phone numbers associated with New accessed accounts more than 9,000 times, and EBT cards were mailed to addresses around metro Atlanta. New was arrested on suspicion of selling benefits, and officers seized 14 cards issued to other people. Prosecutors allege the proceeds funded private-jet trips, luxury cars and jewelry. The USDA has revoked his company’s authorization as a SNAP retailer. The Justice Department says its broader crackdown targets more than 40 defendants. New is presumed innocent unless proven guilty.