ATLANTA — Shawtey Dred, the social media persona of Atlanta rapper and influencer Mercedes Reshard New, has been indicted on federal charges alleging he orchestrated a multimillion-dollar food stamp fraud scheme while showcasing private jets, luxury cars and stacks of cash to millions of online followers.

Federal prosecutors allege that New, 39, controlled more than 350 fraudulent Supplemental Nutrition Assistance Program (SNAP) accounts created with stolen identities between January 2020 and July 2026.

Authorities say the scheme diverted approximately $4.6 million in food assistance benefits intended for low-income families, with about $4 million ultimately siphoned from the accounts.

New, who is widely known online as Shawty Dred, was indicted by a federal grand jury Oct. 7 and arrested in Las Vegas on Oct. 13, according to the U.S. Attorney’s Office for the Northern District of Georgia. 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.

The charges remain allegations, and New is presumed innocent unless proven guilty in court.

Influencer lifestyle draws attention

New built an online following through music, provocative behavior and social media posts displaying an extravagant lifestyle. His Instagram account, richlifeshawtydred, has more than 2 million followers, according to federal prosecutors.

As a rapper, influencer and content creator, New routinely posted images and videos featuring Rolls-Royce and Maybach vehicles, private jet trips, designer clothing, expensive jewelry and large quantities of cash. Some posts showed him counting stacks of bills, including a photograph in which he appeared to burn a $1 bill.

His online persona contrasted sharply with the purpose of the public assistance program he is accused of exploiting. Prosecutors allege that he flaunted his wealth while directing insults at people he characterized as financially unsuccessful.

Investigators say the social media content also helped authorities connect his public displays of wealth with financial activity under investigation.

The case highlights how an influencer’s public profile can become a source of evidence when investigators examine potential discrepancies between reported activity, financial transactions and visible spending.

How the alleged food stamp fraud worked

According to the indictment, New allegedly used stolen identities to establish more than 350 fraudulent SNAP beneficiary accounts through Georgia’s Department of Human Services and its Division of Family & Children Services.

SNAP is a federally funded program administered by the U.S. Department of Agriculture that helps eligible households pay for groceries. Benefits are generally distributed monthly through electronic benefit transfer, or EBT, cards.

Recipients use their cards and personal identification numbers to purchase eligible food at authorized retailers. The benefits are intended to help households afford groceries, not to provide cash for unrelated personal expenses.

Federal prosecutors allege that New arranged for EBT cards linked to fraudulent accounts to be mailed to multiple addresses across the Atlanta metropolitan area. Investigators also say he applied to have his business, Shawty Dred LLC, authorized as a 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 divert more than $660,000 in SNAP benefits, according to the Justice Department.

Police Arrest Influencer

The U.S. Department of Agriculture revoked the company's retailer authorization in November 2025. About two weeks later, local police arrested New in connection with allegations that he was selling SNAP benefits at a metro Atlanta store.

Officers seized 14 EBT cards issued to other people, prosecutors said. Investigators allege that replacement cards were subsequently requested and mailed to addresses associated with New.

The indictment describes a scheme that allegedly manipulated a program designed to support vulnerable households by exploiting identity information, benefit accounts and the retail payment system.

What SNAP benefits cover

SNAP benefits help qualifying individuals and families buy food, including fruits, vegetables, meat, poultry, fish, dairy products, breads, cereals and other eligible grocery items. Seeds and plants that produce food for household consumption may also qualify.

SNAP generally cannot be used to purchase alcohol, tobacco, vitamins, medicines, hot foods at the point of sale or nonfood household products such as cleaning supplies. Rules and limited exceptions can vary by program and jurisdiction.

Benefit amounts depend on factors such as household size, income, allowable expenses and applicable eligibility rules. Applicants must provide information required by their state agency, which determines eligibility and benefit levels.

Fraud involving stolen identities or compromised EBT accounts can create serious difficulties for legitimate recipients. A household may discover that benefits have disappeared only when a card is declined at a grocery store, potentially leaving parents and children without the food budget they expected to have.

Federal officials have said that victims of EBT theft can face financial strain and anxiety while trying to replace stolen benefits or find other ways to buy food.

Federal crackdown expands beyond Atlanta

The charges against New were announced as part of a broader federal enforcement effort targeting alleged fraud involving SNAP and related U.S. Department of Agriculture programs.

The Justice Department said the nationwide operation, conducted from Sept. 1 through Oct. 21, involved more than 40 defendants and nearly $45 million in intended losses across several programs. Nearly $42 million involved alleged SNAP benefit fraud, according to federal officials.

Authorities said the cases involved different alleged methods, including stolen identities, fraudulent benefit applications, unauthorized EBT transactions and retailers accused of processing transactions that did not represent legitimate food purchases.

Food Stamp Fraud Widespread

In a separate Ohio case, two defendants were indicted over an alleged scheme involving nearly $30 million in fraudulent EBT transactions through food retail businesses in Chicago. Prosecutors alleged that stolen account information belonging to SNAP participants in Ohio and elsewhere was used to process transactions that did not reflect genuine sales.

Federal officials have argued that benefit fraud harms both taxpayers and the families who rely on assistance to purchase food.

The enforcement campaign also illustrates the challenges facing investigators who must trace digital transactions, identify account holders, establish who controlled benefit cards and distinguish fraudulent activity from legitimate purchases.

Previous legal troubles and the case ahead

New has also drawn attention for an earlier public indecency case. He was arrested in 2022 after an incident in which he allegedly urinated naked from an apartment balcony. He pleaded guilty to a misdemeanor public indecency charge in 2024 and was sentenced to 50 hours of community service, according to the account provided in earlier reporting.

The earlier case is separate from the federal SNAP allegations.

The federal case now centers on whether New used stolen identities and fraudulent accounts to obtain food assistance benefits, and whether he illegally transferred or used the associated EBT cards.

Prosecutors must prove the charges beyond a reasonable doubt. An indictment represents formal accusations, not a finding of guilt.

If the allegations are proven, the case could become a significant example of how investigators use financial records, electronic payment data, business transactions and public social media posts to investigate alleged fraud involving government assistance programs.

For families who depend on SNAP to keep food on the table, the stakes extend beyond the dollar amount listed in an indictment. Every stolen benefit dollar can represent groceries that an eligible household expected to buy.