Former Georgia State Rep. Karen Bennett, a Democrat, was indicted Monday on one count of making false statements in connection with an application for federal unemployment benefits during the COVID-19 pandemic. The indictment marks the second Georgia Democrat to face fraud charges relating to COVID-19 pandemic assistance over the past month.
The indictment alleges that in May 2020, Bennett submitted an application for benefits under the Pandemic Unemployment Assistance (PUA) program, a federal initiative designed to provide financial support to individuals impacted by the pandemic who were not eligible for traditional unemployment insurance.
In her application, Bennett disclosed two sources of employment: her role in the Georgia General Assembly and her position as a physical therapist with Metro Therapy Providers, Inc., a company she owned that provided in-home therapy services.
The Democrat claimed that COVID-19 quarantine restrictions prevented her from performing her duties at the therapy company, stating that the business could not operate due to the health crisis. Prosecutors contend that this representation was inaccurate, as Bennett operated from a home office and did not engage in in-person client interactions, meaning the pandemic did not fully halt her work as described.
As a result, she reportedly received $13,940 in PUA benefits and federal supplements to which she was not entitled.
Bennett pleaded not guilty to the charge during her initial court appearance Monday and was released on a $10,000 bond. If convicted on the single count of making false statements, she faces a maximum penalty of up to five years in federal prison and a fine of up to $250,000, in accordance with federal sentencing guidelines.
Bennett represented Georgia House District 94, which encompasses portions of DeKalb and Gwinnett counties in the Atlanta metropolitan area. The district includes communities such as Stone Mountain, Lithonia, and parts of Ellenwood and Redan in DeKalb County, along with segments of Snellville and unincorporated areas in Gwinnett County
She held the position for six terms, concluding her service on January 1, 2026, when she retired from the legislature ahead of the 2026 session starting on January 12. During her tenure, she served on committees including Health, Agriculture and Consumer Affairs, and was involved in local delegations for DeKalb and Gwinnett counties.
The recently retired lawmaker also held roles such as vice chair of the National Black Caucus of State Legislators Region VI and participated in community health initiatives, such as Affordable Care Act enrollment events with local churches.
Monday’s indictment comes just weeks after Georgia State Rep. Sharon Henderson, also a Democrat, was indicted on similar charges relating to COVID-19 pandemic assistance fraud.
Henderson is facing two counts of theft of government funds and ten counts of making false statements, all related to alleged fraud in obtaining federal pandemic unemployment benefits. The charges stem from her application in June 2020 — while she was campaigning as a candidate for the House seat — for benefits under the federal COVID-19 relief programs administered through Georgia’s unemployment system.
According to the indictment, Henderson falsely claimed that Henry County Schools was her current employer and that she had been laid off due to the pandemic, asserting she had worked there through March 2020.
In reality, she had only served as a substitute teacher for five days in 2018 and had not worked for the district since then. Her substitute teacher contract explicitly stated that such positions did not entitle her to unemployment benefits, yet she submitted weekly certifications of continued unemployment, including eight such claims in June 2021 after she had been sworn into office, prosecutors allege.
As a result, she allegedly collected $17,811 in benefits to which she was not entitled, with the false statements forming the basis for the ten related counts, according to a press release from the U.S. attorney’s office.
