Massive Food Stamp Scam Nets $42 Million, Rapper Among Convicted

U.S. investigators have uncovered a massive theft of food stamp money. The total stolen is about $42 million. That sum could have fed 220,000 families for a month. The fraud task force announced the findings in Cincinnati. Attorney General Todd Blanche spoke at the press event. He said the money was taken from the Supplemental Nutrition Assistance Program. The scheme involved more than 40 people. They used fake debit cards and false retailer accounts. The crimes also funded guns, drugs, and luxury items. The Department of Justice and the Agriculture Department joined the effort. The case shows how vulnerable the program can be.

One of the key figures is a rapper from Atlanta. His real name is Mercedes New, but he performs as Shawty Dred. He has over two million followers on Instagram. New has a history of public disturbances. In 2022 he was arrested for exposing himself from a balcony. Now he faces dozens of charges. Prosecutors say he stole more than $4 million. He created a company called Shawty Dred LLC to act as a SNAP retailer. He issued hundreds of fraudulent debit cards. Police caught him selling the cards outside a Walmart. Court papers list counts of food stamp fraud, mail fraud, and identity theft. The rapper once bragged about opening restaurants and a strip club. He also talked about world domination and a $100 million bank balance.

Other defendants include two men from Chicago. Jorag Yaseen and Rami Kanaan are accused of stealing nearly $30 million. They used fake electronic benefit transfer transactions at their stores. Their operation affected thousands of Ohio SNAP users. In a separate case, a group of fraudsters from Yemen were charged. They stole $1 million to buy marijuana and cash out benefits. A Dominican national, Fernandez Guzman, took over $22,000 in food stamps. He also stole more than $98,000 in health benefits and $45,500 in housing aid. Additional arrests were made in September. Those suspects sold EBT cards and filed false insurance claims. Some used stolen stamps to buy baby formula and resell it. The total amount taken across all cases exceeds $42 million. The crackdown highlights the need for stronger safeguards.