Popular Social Media Personality Arrested In US Over $4 Million Fraud Scheme

Popular Social Media Personality Arrested In US Over $4 Million Fraud Scheme

  • Mercedes Reshard New, known online as 'Shawty Dred,' was arrested on federal charges in Atlanta in October 2026
  • New allegedly controlled more than 350 fraudulent SNAP accounts built on stolen identities over a six-year period
  • A federal grand jury indicted the Atlanta social media personality on 63 counts including mail fraud and aggravated identity theft

Mercedes Reshard New, a 39-year-old Atlanta social media personality who goes by the name "Shawty Dred," was arrested on federal charges on 13 October 2026 after a grand jury indicted him on allegations that he fraudulently obtained more than $4 million in Supplemental Nutrition Assistance Programme (SNAP) benefits.

The indictment, handed down on 7 October 2026, charges New on 46 counts of mail fraud, 15 counts of aggravated identity theft, and one count each of SNAP fraud and illegal transactions with access devices, 63 counts in total.

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Mercedes Reshard New, known as Shawty Dred, faces 63 federal counts over an alleged $4.6m SNAP fraud scheme involving stolen identities in Atlanta. Image credit: SeventyFour/Getty Images
Source: Getty Images

He was remanded to the custody of the US Marshals Service pending further proceedings.

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How the alleged SNAP scheme worked

Prosecutors allege that between January 2020 and July 2026, New ran and controlled more than 350 fraudulent SNAP accounts created using stolen identities. Electronic Benefit Transfer (EBT) debit cards linked to those accounts were mailed to addresses across the Atlanta metropolitan area. New also allegedly applied for his company, Shawty Dred LLC, to become an authorised SNAP retailer, then used fraudulently obtained EBT cards alongside a point-of-sale device to siphon more than $660,000 in benefits between April 2024 and November 2025.

The USDA revoked his store authorisation in November 2025. Roughly two weeks after that, local police arrested New at a metro Atlanta store on suspicion of selling SNAP benefits and seized 14 EBT cards belonging to other people. After the seizure, New allegedly arranged for replacement cards to be mailed to his store address and other Atlanta locations and continued the scheme.

In total, prosecutors allege he duped Georgia's Division of Family and Children Services into transferring approximately $4.6 million in SNAP benefits into fraudulently established accounts, with EBT cards used to drain around $4 million from those accounts.

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Officials call out flaunted wealth on social media

While the alleged fraud was ongoing, New maintained an active presence on Instagram under the handle richlifeshawtydred, where he has accumulated more than two million followers. Posts on the account show him travelling on private jets, posing beside Rolls-Royce and Maybach vehicles, and handling large amounts of cash.

US Attorney Theodore S. Hertzberg said in a statement: "New allegedly stole over $4 million meant for poor families who need help putting food on the table. My office is fully committed to rooting out abuses of the SNAP program and holding accountable criminal con artists and scammers who appallingly seek to profit by stealing taxpayer money meant to feed vulnerable Americans."

USDA Inspector General John Walk added: "Mr. 'Shawty Dred' allegedly stole food assistance benefits in Georgia from the poorest Americans. He then flaunted his luxurious living off fraudulent proceeds on Instagram and TikTok like there's nothing 'New' under the sun."

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FBI Atlanta Special Agent in Charge Marlo Graham said: "Instead of this money feeding families in need, New allegedly used the cash to bankroll a life of luxury. The FBI will aggressively pursue anyone who exploits these much-needed programs for personal gain."

The case is being jointly investigated by the USDA Office of Inspector General and the FBI, with assistance from the Georgia Department of Human Services Office of Inspector General. Assistant US Attorney Tracia M. King is prosecuting. New is presumed innocent unless proven guilty beyond a reasonable doubt at trial.

Man jailed in US for using relative’s identity to work

Earlier, YEN.com.gh reported that a 29-year-old Ghanaian national, Linford Atakora, had been jailed in the United States after he fraudulently assumed the identity of an American relative to secure employment he was not legally permitted to hold.

Atakora was sentenced on a felony charge of misuse of a Social Security number.

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Source: YEN.com.gh

Authors:
Philip Boateng Kessie avatar

Philip Boateng Kessie (Head of Human Interest Desk) Philip Boateng Kessie is the Head of the Diaspora Affairs Desk at YEN.com.gh, where he has worked since 2022. He has over eight years of journalism experience and holds a bachelor's degree in Communication Studies from the University of Cape Coast. Philip previously served as Head of the Human Interest Desk at YEN.com.gh and has also worked as a reporter for Graphic Communications Group Limited (GCGL) and a content writer for Scooper News. He also holds certificates in Advanced Digital Reporting and Fighting Misinformation. Email: philip.kessie@yen.com.gh