An Atlanta influencer who flaunted private jets, Rolls-Royces and stacks of cash to more than two million Instagram followers is facing 63 federal charges over an alleged $4 million (approximately £2.98 million) food stamp fraud scheme.
Mercedes Reshard New, 39, known online as 'Shawty Dred', was arrested on 13 October 2026 after prosecutors accused him of controlling hundreds of fraudulent accounts to obtain food assistance benefits intended for low-income American families.
The alleged scheme ran from January 2020 to July 2026.
Authorities had already seized 14 food assistance cards from New during an earlier arrest in November 2025. Despite the seizure, prosecutors allege that he subsequently arranged for replacement cards to be delivered to his store and other addresses around Atlanta.
Private Jets and Luxury Cars Amid Alleged $4 Million Scheme
On Instagram, New portrayed himself as a wealthy businessman enjoying an extravagant lifestyle. His account, @richlifeshawtydred, featured private jet journeys, luxury Rolls-Royce and Maybach vehicles, and photographs showing him handling large amounts of cash.
Federal investigators allege that New controlled more than 350 fraudulent accounts under the Supplemental Nutrition Assistance Program (SNAP), which helps low-income American households buy groceries.
According to the US Department of Justice, the accounts were created using stolen identities. New allegedly arranged for electronic benefit transfer (EBT) cards to be mailed to addresses across metropolitan Atlanta.
Prosecutors say approximately $4.6 million (approximately £3.43 million) in benefits was deposited into the fraudulent accounts, with roughly $4 million (approximately £2.98 million) subsequently diverted through EBT transactions.
Police Seized 14 Food Stamp Cards, but More Allegedly Followed
One of the most striking allegations concerns what happened after New's earlier arrest in November 2025.
Prosecutors say New applied for his company, Shawty Dred LLC, to become an authorised SNAP retailer. Between April 2024 and November 2025, he allegedly used fraudulently obtained EBT cards and a payment terminal associated with the business to divert more than $660,000 (approximately £492,000) in food assistance benefits.
The US Department of Agriculture revoked the store's SNAP authorisation in November 2025. Approximately two weeks later, local police arrested New for allegedly selling SNAP benefits at a metropolitan Atlanta store. Officers seized 14 EBT cards issued in other people's names.
According to prosecutors, New subsequently arranged for replacement cards to be mailed to his store and other Atlanta addresses. The alleged scheme continued until July 2026, several months after the earlier arrest.
Prosecutors Allege Food Assistance Money Funded Luxury Spending
Investigators also detailed how some of the allegedly diverted benefits were spent.
According to The Atlanta Journal-Constitution, the indictment alleges that approximately $660,000 (approximately £492,000) in SNAP benefits was electronically transferred into a Bank of America account linked to New's business. The money was allegedly used for personal expenses, including holidays, clothing and jewellery.
The indictment also describes an incident at Walmart where New allegedly used multiple EBT cards to purchase groceries for other shoppers in exchange for payment.
When federal agents arrested New on 13 October, they searched his hotel room. According to a prosecution detention motion reported by the newspaper, investigators recovered 19 Tennessee EBT cards and one Georgia card, none issued in his name.
US Attorney Theodore S. Hertzberg condemned the alleged misuse of food assistance funds.
'New allegedly stole over $4 million meant for poor families who need help putting food on the table,' Hertzberg said.
The accusations concern a programme serving nearly 1.3 million people in Georgia as of September 2026, according to state figures reported by The Atlanta Journal-Constitution.
Influencer Pleads Not Guilty as Judge Orders Detention
A federal grand jury indicted New on 7 October 2026 on 46 counts of mail fraud, 15 counts of aggravated identity theft, one count of SNAP fraud and one count of illegal transactions with access devices. New pleaded not guilty during a court appearance on 22 October.
Prosecutors sought his continued detention, arguing that he posed a flight risk. They cited his alleged access to substantial funds and previous criminal convictions. A judge granted the request, ordering him to remain in custody pending further proceedings.
His federal public defender had not responded to a request for comment when The Atlanta Journal-Constitution updated its report on 24 October.
Georgia authorities have also introduced restrictions on online and out-of-state EBT transactions to help prevent similar fraud, according to the newspaper. Beneficiaries who need to make such transactions must first unblock their cards.
The charges against New remain allegations, and he is presumed innocent unless proven guilty.
Beyond his lavish social media image, the case highlights concerns about protecting food assistance programmes from identity theft and fraudulent transactions, particularly when suspected misuse has already been reported to authorities.
