Local
Federal case alleges Atlanta man used hundreds of fake SNAP accounts to divert $4.6 million
Mercedes Reshard New, known online as Shawty Dred, faces 63 federal counts tied to an alleged scheme involving stolen identities and SNAP debit cards. Prosecutors say more than 350 fraudulent accounts were used between 2020 and 2026.
An Atlanta social media personality is facing federal charges in a case alleging that a scheme involving fake Supplemental Nutrition Assistance Program accounts diverted $4.6 million in food benefits intended for recipients.
Mercedes Reshard New, 39, who uses the name Shawty Dred online, was indicted Oct. 7 by a federal grand jury in the Northern District of Georgia. The indictment charges New with 46 counts of mail fraud, 15 counts of aggravated identity theft, and one count each of SNAP fraud and illegal transactions involving access devices.
Prosecutors allege that from January 2020 through July 2026, New controlled more than 350 fraudulent SNAP accounts created with stolen identities. The accounts were connected to electronic benefit transfer debit cards sent to addresses around metro Atlanta, according to the U.S. Attorney’s Office.
The indictment also alleges New sought authorization for Shawty Dred LLC to operate as a SNAP retailer. Between April 2024 and November 2025, prosecutors say, New used EBT cards obtained through fraud and a point-of-sale device associated with the company to take more than $660,000 in benefits.
The U.S. Department of Agriculture revoked the company’s retailer authorization in November 2025. About two weeks later, local police arrested New on suspicion of selling SNAP benefits at a metro Atlanta store, prosecutors said. Officers allegedly found 14 EBT cards issued to other people. Investigators say replacement cards were later sent to the store and other addresses in the area.
Prosecutors estimate the alleged scheme diverted $4.6 million in SNAP funds, with about $4 million siphoned from cardholders’ accounts. U.S. Attorney Theodore Hertzberg said the benefits were meant to help families afford food and that his office was committed to prosecuting abuses of the program.
New was arrested Oct. 13 and is being held by the U.S. Marshals Service pending further proceedings. The charges are allegations; an indictment is not a finding of guilt. The information provided does not include a plea or a response from New or a defense attorney.