East Point police confiscated 14 food-assistance debit cards issued to other people when they arrested Atlanta rapper Shawty Dred in November 2025. Federal prosecutors say he subsequently arranged for replacement cards to be mailed to his business and other addresses around Atlanta.
The 39-year-old rapper and social media personality, whose legal name is Mercedes Reshard New, was indicted on 63 federal counts on October 7, 2026. The U.S. Attorney’s Office announced the charges on October 21.
The indictment alleges that stolen identities were used to establish hundreds of fraudulent SNAP accounts between 2020 and 2026.
Prosecutors say more than $4 million was spent through EBT transactions associated with the scheme.
Investigators Traced More Than 9,000 Calls to SNAP Accounts
Georgia’s Department of Human Services Office of Inspector General identified suspicious activity in 2025 involving the automated telephone system used by SNAP recipients to access their electronic benefit transfer accounts. Numbers associated with New contacted the system more than 9,000 times and accessed over 350 separate accounts, according to the Justice Department’s national enforcement report.
Investigators initially estimated approximately $1.8 million in transactions linked to the cards. Their expanded investigation ultimately connected more than 500 Georgia EBT cards to New, federal officials said.
Prosecutors Say Stolen Identities Were Used to Open SNAP Accounts
The federal indictment alleges that benefit applications were submitted using names, birth dates and Social Security numbers belonging to people who had not authorized their use. More than 340 fraudulent accounts were established, according to the indictment, with cards mailed to addresses in metropolitan Atlanta, including locations associated with New.
Forty-six mail-fraud counts identify specific card deliveries between 2022 and 2026. The indictment lists repeated mailings to a DeLowe Drive address associated with Shawty Dred LLC, along with other locations used in the alleged scheme.
His SNAP-Approved Business Allegedly Received $660,000
New applied for authorization to accept SNAP benefits through Shawty Dred LLC on January 10, 2024. The USDA approved the business on March 26, 2024, and New obtained a point-of-sale terminal that could process electronic benefit transactions, according to the indictment.
Prosecutors allege that approximately $660,000 in SNAP benefits was transferred into a Bank of America account controlled by New between April 2024 and November 2025. The indictment says the money was used for personal expenses, including vacations, clothing and jewelry.
Police Seized 14 Cards at Walmart, but More Cards Were Mailed
The USDA revoked Shawty Dred LLC’s permission to accept SNAP benefits in November 2025. On November 29, East Point police arrested New after he allegedly used cards issued to other people to buy groceries for Walmart shoppers in exchange for payment. Officers seized 14 Georgia EBT cards, according to the Justice Department.
The indictment alleges that New accessed EBT accounts to report cards lost and request replacements, providing mailing addresses for delivery. Its list of card mailings includes December 3, December 11 and December 18, 2025, after the Walmart incident. Federal prosecutors say replacement cards for the seized benefits accounts were sent to his store and other Atlanta-area addresses.
Indictment Lists $4.6 Million in Benefits and More Than $4 Million Spent
From approximately January 2020 through July 2026, Georgia’s Division of Family and Children Services allegedly transferred $4.6 million in SNAP benefits into fraudulently established accounts. The indictment says transactions using cards linked to those accounts totaled more than $4 million.
In its nationwide enforcement summary, the Justice Department separately estimated the intended loss attributable to New’s case at $4.4 million. The broader October 21 operation involved more than 40 defendants in different cases and nearly $42 million in alleged SNAP-related fraud.
Prosecutors Also Pointed to His Luxury-Car and Private-Jet Posts
The Justice Department highlighted New’s Instagram account, richlifeshawtydred, which had more than two million followers. Officials described posts showing private jets, Rolls-Royce and Maybach vehicles, and stacks of cash.
USDA Inspector General John Walk alleged that New displayed a luxurious lifestyle financed through misappropriated benefits.
He Faces 63 Federal Counts and Was Ordered Detained
The indictment contains 46 mail-fraud counts, 15 aggravated identity-theft counts, one SNAP fraud count and one count involving illegal transactions with access devices. New was arrested in Las Vegas on October 13.
The Atlanta Journal-Constitution, citing a government detention motion, reported that agents found 19 Tennessee EBT cards and one Georgia card in his hotel room, none issued in his name. Following his October 22 not-guilty plea, a federal magistrate judge ordered him detained pending trial, according to FOX 5 Atlanta. New is presumed innocent unless proven guilty.
What to Do if Someone Applies for SNAP Using Your Identity
Someone who receives an EBT card or benefits notice for an application they did not submit can report suspected misuse through Georgia’s SNAP fraud service. The Georgia Department of Human Services Office of Inspector General also accepts reports at 404-463-5495.
People whose personal information was used without permission can report identity theft through the Federal Trade Commission’s IdentityTheft.gov. Keep any benefit notices, unexpected cards and related correspondence for the report.