The Justice Department says its first National USDA Benefits and Program Fraud Enforcement Surge, which ran from Sept. 1 to Oct. 21, 2026, produced more than 40 defendants across 13 U.S. attorney’s offices. The cases involve nearly $45 million in intended losses to the federal government, and nearly $42 million of that is food stamp fraud under the Supplemental Nutrition Assistance Program, known as SNAP. The Utah Attorney General’s Office joined the push as a separate partner.
How the $45 million splits between food stamps and other USDA programs
The department’s announcement, issued Wednesday, Oct. 21 through the U.S. attorney’s office in Tampa, puts total intended losses at nearly $45 million. SNAP accounts for nearly $42 million of it, roughly 93%, which leaves about $3 million tied to other USDA programs. “Intended losses” is the department’s own term for what the schemes aimed to take, not a sum a court has ordered repaid.
The Tampa office’s own contribution shows what the remainder looks like. Mark Frisbie pleaded guilty on Sept. 29 to submitting a false crop-insurance claim, admitting he grew and sold more than $6.8 million in bell peppers and tomatoes while reporting under $800,000. He agreed to repay $1,748,408 to the Federal Crop Insurance Corporation and owes $1,506,992.26 to the Farm Service Agency over two pandemic-era relief programs. Sentencing is set for Jan. 11, 2027.
Which 13 districts took part, and who else is in the surge
The 13 offices named in the release are the Middle District of Florida, Eastern District of Arkansas, Northern District of Georgia, Northern District of Iowa, District of Maryland, Eastern and Western Districts of Michigan, Eastern District of Missouri, Northern and Southern Districts of Ohio, Northern District of Oklahoma, District of Oregon and Eastern District of Pennsylvania. The Utah Attorney General’s Office worked alongside them and the department’s National Fraud Enforcement Division, which was created on April 7, 2026.
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The list of investigative partners is long. It includes USDA’s Office of Inspector General, the FBI, Homeland Security Investigations, IRS Criminal Investigation, the Social Security Administration’s inspector general, the Secret Service and several state agencies. Attorney General Todd Blanche said in the release that the schemes “siphoned millions from taxpayers and robbed struggling Americans of the benefits they depend on.”
What a benefit theft case looks like: the Atlanta indictment
The surge’s most visible SNAP case comes from the Northern District of Georgia, where a federal grand jury indicted Mercedes Reshard New, 39, of Atlanta, on Oct. 7. According to the U.S. attorney’s office, New, who goes by “Shawty Dred” on social media, was arrested Oct. 13 on 46 counts of mail fraud, 15 counts of aggravated identity theft, one count of SNAP fraud and one count of illegal transactions with access devices. The indictment is only an allegation, and he is presumed innocent.
The indictment alleges that between January 2020 and July 2026 he controlled more than 350 fraudulent SNAP accounts opened with stolen identities, drawing more than $4 million. Prosecutors say replacement cards were mailed to Atlanta addresses and used with a point-of-sale device tied to his company, Shawty Dred LLC, which had applied to become an authorized SNAP retailer. U.S. Attorney Theodore S. Hertzberg said New “allegedly stole over $4 million meant for poor families who need help putting food on the table.”
What households on SNAP are told to do about stolen benefits
People who receive SNAP are the ones the benefit money was meant for, and the Atlanta case turned on accounts opened in other people’s names. Households that notice an EBT balance lower than expected, or a card replacement they did not request, have a reason to act now, because theft cases are being charged on a national scale. USDA’s SNAP fraud page, updated Sept. 8, warns that criminals steal benefits through card skimming, card cloning and other scams.
Where to report food stamp fraud, and who handles a household’s own stolen benefits
The agency’s fraud reporting page lists three routes to the USDA Office of Inspector General for anyone who suspects abuse of federal nutrition programs. A report can go in through the online OIG Hotline, by phone at (202) 690-1622 (711 for voice and TDD), or by mail to P.O. Box 23399, Washington, D.C. 20026-3399.
The same page says that people receiving benefits should report to their state agency, which can be found by selecting a state on the page’s map. The Atlanta case shows why that matters: Georgia’s Division of Family & Children Services runs SNAP in the state, and prosecutors say it transferred about $4.6 million to the fraudulent accounts. The release does not set out a replacement process for stolen benefits, so households need the state agency to say what applies in their case.
Blanche added that the department “will continue working to root out fraud in every federal agency and program.” The surge is the first of its kind for USDA programs, and the Atlanta indictment, which includes aggravated identity theft counts, alleges that more than 350 accounts were opened with stolen identities. Anyone whose name, Social Security number or address was misused that way could learn of it only from a notice or a credit report, which is why a credit freeze and locked account logins matter beyond SNAP households.
Could a stolen identity already be drawing a benefit card?
The Atlanta indictment describes hundreds of benefit accounts opened with stolen identities, and a victim can go years without a sign. By the time a notice arrives, the thief has had a long head start.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
