Former Georgia State Representative Charged with Pandemic Fraud

Federal charges have been filed against former Georgia State Representative Karen Bennett for allegedly defrauding a COVID-19 relief program, marking the second such case involving a state lawmaker in recent months.

Bennett, a Democrat who represented House District 94 covering parts of DeKalb and Gwinnett counties from 2012 until her retirement on January 1, faces a federal charge of making false statements. She appeared in the U.S. District Court for the Northern District of Georgia on Monday, where she waived indictment, pleaded not guilty, and was released on $10,000 bail.

According to court documents, Bennett allegedly collected $13,940 after submitting a fraudulent application to the Pandemic Unemployment Assistance (PUA) program in May 2020. The PUA was established as part of federal COVID-19 relief efforts to provide unemployment benefits to workers who wouldn’t typically qualify for standard unemployment insurance, including self-employed individuals, gig workers, and independent contractors.

Prosecutors claim Bennett first applied for regular unemployment insurance in April 2020 but was deemed ineligible. The following month, she applied for PUA benefits, listing two employers: the Georgia General Assembly and Metro Therapy Providers Inc., a physical therapy business she owned in DeKalb County.

In her application, Bennett allegedly misrepresented her work with Metro Therapy, claiming it was her primary occupation and source of income. She stated that pandemic restrictions prevented her from performing services or reaching her place of employment due to quarantine measures, indicating she had last been able to work on April 10, 2020.

“In reality, Bennett was not prevented from performing her work for Metro Therapy or reaching her place of employment because of COVID-19 quarantine,” court documents state. Federal authorities allege her role with the company was primarily administrative work she conducted from her home office, which she could continue throughout the pandemic.

The investigation revealed that after her application was approved, Bennett submitted weekly certifications requesting benefits. In each submission, she disclosed receiving $300 weekly from the General Assembly but allegedly failed to report other income sources. She also claimed to be actively seeking work while being unable to perform her usual duties due to pandemic restrictions.

Prosecutors further allege Bennett failed to disclose her employment with a church, from which she reportedly received a $905 weekly paycheck throughout the period she claimed PUA benefits.

According to the U.S. Attorney’s Office for the Northern District of Georgia, a hearing is scheduled for January 21 where Bennett is expected to enter a guilty plea. Following her guilty plea, she will be required to repay the fraudulently obtained funds.

This case represents the second pandemic fraud charge against a Georgia state lawmaker in recent months. In December, Representative Sharon Henderson, a Democrat representing House District 113, was indicted on similar charges related to pandemic unemployment fraud. Henderson remains free on bail and has retained her position in office. Governor Brian Kemp has not yet appointed a review commission to determine whether Henderson should be suspended following her indictment.

U.S. Attorney Theodore Hertzberg indicated in December that other Georgia House members were under investigation for similar allegations beyond Henderson. The recent charges against Bennett raise questions about whether additional cases will emerge.

The Democratic Party now faces reduced representation in the Georgia House, starting the current session with approximately 79 members in the 180-member chamber. In addition to Bennett’s departure, Democratic Representative Lynn Heffner of Augusta resigned Monday, citing extensive hurricane damage to her home that has created residency concerns within her district.

Governor Kemp is now tasked with calling special elections to fill the vacancies left by both Bennett and Heffner, though it remains uncertain whether their replacements will be seated before the end of the regular legislative session.

The pandemic relief fraud investigations highlight growing scrutiny over the distribution and oversight of COVID-19 emergency funds, which were rapidly deployed during the height of the public health crisis.