Task Force Uncovers $42 Million in Food Stamp Fraud

A fraud task force established during the Trump administration has uncovered nearly $42 million in stolen food stamp funds, which were intended for needy families but were instead diverted to fund criminal activities and support the lavish lifestyles of individuals, including a rapper with a history of public indecency. The operation, involving the Departments of Justice and Agriculture, has led to indictments against more than 40 individuals for defrauding the Supplemental Nutrition Assistance Program (SNAP) and related programs.

During a press conference in Cincinnati, Attorney General Todd Blanche stated that the recovered $42 million could have provided a month's worth of food for approximately 220,000 Americans. The USDA Inspector General noted that these programs were exploited to enrich fraudsters and finance other criminal enterprises, such as those involving guns and drugs, thereby compromising community safety.

Among those indicted is Mercedes New, an Atlanta-based Instagram influencer and rapper known as Shawty Dred. Prosecutors allege that New, who boasts millions of followers and a lifestyle featuring luxury cars and jewelry, perpetrated a scheme that pilfered over $4 million in benefits. His alleged methods included obtaining hundreds of fraudulent debit cards and establishing his company, Shawty Dred LLC, as a SNAP retailer. New was previously arrested for public indecency after urinating from his apartment balcony.

He faces over 40 counts, including food stamp fraud, mail fraud, and aggravated identity theft. Last November, Georgia police arrested New outside a Walmart for allegedly selling debit cards to individuals. In 2021, New expressed ambitions of expanding his business ventures, including opening restaurants and a strip club, and aiming for "World domination lol" and "$100 million in my bank account."

Vice President JD Vance commented at the press conference, "SNAP exists to help hungry children eat; it does not exist to provide private jets to a guy like Shawty Dred." New was arrested in Las Vegas on the same day that two other alleged SNAP fraudsters, Jorag Yaseen and Rami Kanaan, were indicted in Ohio. They are accused of defrauding the program of nearly $30 million through fraudulent electronic benefit transfer (EBT) transactions via their Chicago-based food retail stores.

Other cases highlighted include a scheme involving the sale of EBT cards, fraudulent crop insurance claims totaling $1.7 million submitted to the USDA, and an operation that acquired over 124,000 pounds of baby formula using $2.4 million in stolen food stamps, which was then resold on the black market. Additionally, alleged fraudsters from Yemen, residing in Ohio, Michigan, and New York, were charged with stealing $1 million in food stamp benefits to purchase marijuana or exchange EBT card values for cash.

Fernandez Guzman, a national of the Dominican Republic, is also accused of stealing over $22,000 in SNAP benefits, more than $98,000 in MassHealth benefits, and over $45,500 in Section 8 housing benefits. He allegedly used counterfeit state ID cards and driver's licenses in three states to facilitate these thefts.

"These schemes siphoned millions from taxpayers and robbed struggling Americans of the benefits they depend on so fraudsters could use them for their own selfish purposes," Blanche stated.