Federal prosecutors have filed charges against a second former Georgia state legislator for allegedly making false statements to collect federal unemployment benefits during the pandemic.

Karen Bennett, a Democrat from Stone Mountain who represented parts of DeKalb and Gwinnett counties since 2012, is accused of fraudulently obtaining $13,940 in pandemic unemployment assistance. According to court documents filed Monday, Bennett waived indictment, pleaded not guilty, and was released on $10,000 bail after her initial court appearance.

Bennett, who resigned from the Georgia House of Representatives last Thursday, allegedly misrepresented her employment situation during the COVID-19 pandemic. Prosecutors claim she falsely stated that quarantine prevented her from working for Metro Therapy Providers, a company she owned. The charges allege that Bennett’s role at the company was primarily administrative, conducted from a home office rather than providing direct therapy to clients.

Furthermore, authorities contend that Metro Therapy continued to operate and generate income after a brief disruption. Investigators also discovered that Bennett failed to disclose an additional $905 in weekly payments she was receiving from a church, where she served as a minister in the African Methodist Episcopal Church.

The case marks the second such prosecution of a Georgia Democratic lawmaker. In December, Rep. Sharon Henderson of Covington was indicted on charges of theft of government funds and making false statements, accused of illegally collecting $17,811 in unemployment benefits. Unlike Bennett, Henderson remains in office while free on bail. Republican Governor Brian Kemp has not yet appointed a review commission to determine whether Henderson should be suspended following her indictment.

At the time of Henderson’s indictment, U.S. Attorney Theodore Hertzberg indicated that other Georgia state House members were under investigation. It remains unclear whether additional charges will be forthcoming beyond Bennett’s case.

The special unemployment benefits at the center of these cases were part of the federal government’s pandemic relief efforts. These programs, administered through state unemployment systems, provided assistance to people who lost their jobs due to COVID-19. Recipients were required to certify their continued unemployment status weekly to maintain eligibility for benefits.

Legal experts note that pandemic-related benefit fraud has become a significant focus for federal prosecutors nationwide, with hundreds of millions of dollars believed to have been improperly claimed during the crisis. The Department of Justice has established specialized task forces to investigate such cases, with public officials receiving particular scrutiny.

Bennett’s resignation comes at a politically sensitive time. Democrats will likely begin the legislative session Monday with 79 members in the 180-member House, further weakened by another recent resignation. Democratic state Rep. Lynn Heffner of Augusta stepped down Monday, citing severe damage to her home from Hurricane Helene in 2024 and doubts about maintaining residency in her district during reconstruction.

Governor Kemp must now call special elections to fill both vacancies. The timing suggests replacements may not take office before the current regular legislative session concludes, potentially impacting the Democrats’ ability to influence key votes.

Bennett’s lawyers have not responded to requests for comment. However, legal analysts point out that waiving indictment in federal court often signals a defendant’s intention to eventually enter a guilty plea as part of negotiations with prosecutors.

If convicted, Bennett could face significant penalties, including potential prison time and restitution of the fraudulently obtained funds. The case has drawn attention not only for the alleged fraud but also for the broader implications of public officials facing criminal charges related to pandemic relief programs intended to help those in genuine financial distress.