Rapper Who Burned Cash in Viral Videos Arrested in $42M Food Stamp Fraud Crackdown

An Atlanta rapper and social media personality who showcased stacks of cash and luxury vehicles online has been indicted on federal fraud charges, accused of obtaining millions of dollars in Supplemental Nutrition Assistance Program (SNAP) benefits through fraudulent accounts, according to federal prosecutors.

Mercedes New, 39, known online as Shawty Dred, allegedly controlled more than 350 fraudulent SNAP accounts created using stolen identities between January 2020 and July 2026, according to the US Department of Justice. Prosecutors allege that he caused approximately $4.6 million in benefits to be transferred to fraudulent accounts, with about $4 million siphoned from them.

The case was among enforcement actions against more than 40 defendants announced by federal officials on 21 October 2026. The Justice Department said the cases involved nearly $45 million in intended losses to the federal government, including nearly $42 million linked to alleged or proven fraud involving SNAP benefits.

Private Jets, Luxury Cars, and Stacks of Cash

New, an Atlanta-based rapper and social media personality, has spent years showcasing a lavish lifestyle online, including private jet trips, luxury vehicles, jewellery, and stacks of cash. Prosecutors allege that New used money obtained through the scheme to finance his lavish lifestyle. The Justice Department cited social media posts in which New denounced other people as 'broke motherf****s' while displaying his wealth.

Prosecutors allege that New arranged for electronic benefit transfer (EBT) cards to be mailed to addresses around metro Atlanta and 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 point-of-sale device associated with the business to obtain more than $660,000 in SNAP benefits. The US Department of Agriculture revoked the company's SNAP authorisation in November 2025.

Vance Says Alleged SNAP Fraud Funded a Lavish Lifestyle

Federal officials highlighted the case at a news conference in Cincinnati on Wednesday, with Vice President JD Vance, Justice Department officials, and representatives of the US Department of Agriculture discussing the wider crackdown. 'SNAP exists to help hungry children eat; it does not exist to provide private jets to a guy like Shawty Dred,' Vance said.

Investigators said phone numbers associated with New contacted Georgia's SNAP benefits phone system more than 9,000 times, accessing over 350 accounts, according to the DOJ. Vance said investigators examined New's social media posts and compared his apparent spending on luxury items with the money he allegedly obtained through the scheme.

'Part of what helped us identify Shawty Dred is the guy's posting Instagram videos, and we're able to connect the money that he's making with the money that he's then using to go and buy seats on private jets and all these other things,' Vance added.

Attorney General Todd Blanche said more than 40 defendants had been targeted in a nationwide crackdown on alleged fraud involving SNAP and other USDA programmes. 'Two hundred twenty thousand Americans could've eaten for the entire month of October if it were not for this $42 million in fraud.' he said. 'We've indicted men and women in 13 different districts just in the past seven weeks, and that effort will continue for as long as it takes.'

Previous Arrests Drew Attention

New has more than two million Instagram followers. He was previously arrested in 2022 following allegations that he exposed himself and urinated from his apartment balcony, according to media reports. In November 2025, local police arrested New on suspicion of selling SNAP benefits at a metro Atlanta store, the US Department of Justice said. Officers seized 14 EBT cards issued to other people, according to prosecutors.

New has been indicted, but the charges remain allegations. He is presumed innocent unless and until proven guilty in court.