Judge denies bond for influencer 'Shawty Dred' in $4M fraud case

ATLANTA - A judge has ordered an Atlanta social media influencer known online as "Shawty Dred" held behind bars without bond as he faces dozens of federal charges accusing him of running a $4 million food assistance fraud scheme.

What we know:

Mercedes Reshard New, 39, appeared in federal court in Atlanta for his arraignment and detention hearing on Thursday. A magistrate judge agreed with federal prosecutors that New should be held without bail pending trial. He was transferred to the Irwin County Detention Center in Ocilla.

ORIGINAL STORY: Atlanta influencer 'Shawty Dred' indicted in $4M SNAP fraud scheme

According to federal prosecutors, New orchestrated a multi-year scheme running from January 2020 through July 2026. Court documents allege New acquired more than 350 electronic benefit transfer (EBT) cards using stolen identities and registered his company, Shawty Dred LLC, as an authorized Supplemental Nutrition Assistance Program (SNAP) retailer. He then allegedly used a company card reader to swipe fraudulent EBT cards, directly pocketing over $660,000.

After the U.S. Department of Agriculture revoked his retailer authorization in November 2025, New allegedly took the scheme directly into grocery store aisles. Local police arrested New at a Walmart in East Point after he allegedly approached shoppers at checkout lanes, offered to swipe his fraudulent cards for their groceries, and took their cash instead. Police seized 14 EBT cards, but prosecutors said New immediately ordered replacement cards sent to metro Atlanta addresses to resume operations, prosecutors said. 

In total, authorities said New duped the Georgia Division of Family and Children Services into loading roughly $4.6 million into fraudulent accounts, siphoning about $4 million in taxpayer benefits. A federal grand jury indicted New on more than 60 felony counts, including 46 counts of mail fraud, 15 counts of aggravated identity theft, SNAP fraud, and access device fraud.

What they're saying:

U.S. Attorney Theodore S. Hertzberg said New deliberately preyed on a federal safety net created for vulnerable families.

"What's really heinous about all of this is you're talking about hard-earned money that American workers give to the government for the purpose of providing for social good," Hertzberg told FOX 5. "This is about helping families put food on the table for their children. And he took that money out of the program and put it in his own pocket. That's why this is so disgusting. That's why the conduct is so reprehensible."

Investigators said New amassed more than 2 million social media followers while flaunting the stolen proceeds. Online, New regularly posted videos boarding private jets, posing with Rolls-Royce and Maybach vehicles, mocking critics as broke, and setting stacks of cash on fire.

"We're talking about money that is earmarked for hungry families, for hungry children, so that families can put food on the table," Hertzberg said. "And he used it instead to line his own pockets. And he bragged about his wealth. He bragged being on private jets. He braged about having ultra-luxury vehicles like Rolls-Royce and Maybach vehicles. He bragged about going on trips. He lit money on fire, on video. And he called other people broke MFers, bragging about all of this ill-gotten game that he had. Really disgusting behavior."

What we don't know:

Federal prosecutors have not disclosed how New obtained the personal identification information used to create hundreds of fake SNAP accounts. 

Authorities have also not confirmed whether federal agents have seized the luxury vehicles, cash, or other assets displayed across his social media pages.