What Prosecutors Allege Shawty Dred Did Over Six Years
The federal case filed in the Northern District of Georgia accuses Mercedes New, 39, of running a SNAP benefits fraud scheme from January 2020 through July 2026. According to prosecutors, New created fraudulent SNAP accounts using stolen identities and accessed those accounts to transfer and convert benefits for cash. The charges include mail fraud, aggravated identity theft, SNAP fraud, and illegal transactions involving access devices. All of these are allegations, and no court has yet determined his guilt.
Georgia's Department of Human Services Office of Inspector General flagged the scheme after investigators discovered that a phone number linked to New accessed the state's SNAP benefits interactive voice response line more than 9,000 times. Those calls touched more than 350 individual SNAP accounts. The scale of that access pattern is what drew federal investigators into the case and led to the Northern District indictment. Follow Atlanta crime and local coverage at Di-VerZe E.N.T News.
The Alleged Store Operation and the November 2025 Walmart Arrest
Prosecutors allege that New used Shawty Dred LLC - his Atlanta business, which had been authorized as a SNAP retailer - as a vehicle in the scheme. Investigators estimate approximately $635,000 in transactions connected to that store, which is included in the total $1.8 million in SNAP transactions linked to the alleged network. This is not the first time New faced law enforcement over SNAP-related activity.
In November 2025, New was arrested at an East Point, Georgia Walmart after he was allegedly found soliciting customers to sell their SNAP cards to him. East Point Police reportedly seized 14 Georgia EBT cards at the time. That earlier arrest contributed to the investigation that ultimately led to the federal indictment. Prosecutors presented the November 2025 arrest as evidence of an ongoing pattern. For Atlanta's music and culture scene, follow Di-VerZe's Atlanta Top 25 and listen to the independent artists making moves at Di-VerZe Artist Interviews.
The Case Is Part of a National SNAP Enforcement Sweep
The Shawty Dred case is one of more than 40 actions taken in what the U.S. Department of Justice and the USDA called the first-ever National Benefits and Program Fraud Enforcement Surge. The enforcement effort ran from September 1 through October 21, 2026, and targeted defendants across the country. Officials said the cases involved nearly $45 million in intended losses to the federal government, with approximately $42 million tied specifically to alleged SNAP benefits fraud.
For New specifically, the charges carry significant exposure. Aggravated identity theft alone carries a mandatory minimum of two years in federal prison per count, and the combined charges represent a major federal case for the Atlanta rapper who built a social media following showcasing a high-spending lifestyle. The next steps in the case - arraignment, a potential plea, or trial - have not been publicly announced. Independent artists who build their careers on authentic music and real community connections can submit directly to Di-VerZe HitZ Radio for free airplay - include your ISRC code and earn performance royalties on every spin.
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While this story plays out in federal court, Di-VerZe HitZ Radio keeps the culture moving - streaming Atlanta hip-hop and R&B free, 24/7 on web, iOS, and Android. Independent artists who are building real legacies through their music can submit tracks free at the Di-VerZe airplay submission page. Include your ISRC code, earn performance royalties every time your song spins, and let the music speak for itself.