Former Georgia state representative charged with alleged pandemic fraud

ATLANTA, Ga. (Atlanta News First) — A former Georgia state representative was charged Monday with alleged pandemic-related fraud.

Former state Rep. Karen Bennett, a Democrat from Stone Mountain, is facing a federal charge of making false statements, according to the U.S. District Court for the Northern District of Georgia.

Bennett represented House District 94, which covers parts of DeKalb and Gwinnett counties, from 2012 until she retired from the legislature on Jan. 1.

She is accused of collecting $13,940 after filing a false application for benefits with the Pandemic Unemployment Assistance (PUA) program in May 2020, according to court documents.

The PUA was created to provide federally funded unemployment-related benefits to those whose jobs were affected by the COVID-19 pandemic, but who were ineligible for regular unemployment insurance (UI) benefits, including those who were self-employed, gig workers and 1099 independent contractors.

To qualify for PUA, workers had to first apply for and be denied UI benefits.

Court documents state Bennett applied for UI benefits in April 2020 but was deemed ineligible.

The next month, she applied for PUA benefits, disclosing 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 said her work at Metro Therapy, which she claimed consisted of providing in-home physical therapy services, was her primary occupation and primary means of livelihood.

Bennett claimed she was last able to work on April 10, 2020, and that the pandemic prevented her from performing any services with the company, court documents state.

She allegedly claimed she was “unable to reach my place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency,” and could not return to work because the “policies of the program require strict shelter in place guidelines and person to person contact is not accepted.”

Bennett further claimed she would be able to provide documentation to prove COVID-19 was the cause of her unemployment.

“In reality, Bennett was not prevented from performing her work for Metro Therapy or reaching her place of employment because of COVID-19 quarantine,” according to court documents.

Instead, prosecutors allege Bennett’s role with the company was an administrative one that she performed from her home office.

“She was able to continue working as usual from her home to support Metro Therapy throughout the pandemic, and the therapists who provided actual services to clients were able to continue their work after a brief disruption,” court documents state.

Once her application was approved, Bennett submitted online certifications every week for which she requested benefits, prosecutors allege.

“In each of those certifications, while she stated that she was receiving $300 per week from the General Assembly, she disclosed no other income,” court documents say.

Bennett allegedly claimed in every certification that she had not received payments that week from Metro Therapy or other employers besides the legislature, and that she was “able, available and actively seeking work” during the week.

On the certifications, Bennett claimed she was either unable to work in her Metro Therapy office because of quarantine restrictions or “experienced a significant reduction of my customary or usual services” because of the public health emergency, according to prosecutors.

“However, in reality, Bennett was not actively seeking work, Bennett was not prevented from working for Metro Therapy because of a COVID-19 quarantine, and Metro Therapy was still operating and receiving income,” court documents state.

Court documents further allege that on the PUA application and weekly certifications, Bennett did not disclose that she was also employed by a church. She allegedly received a $905 paycheck from the church every week she was claiming PUA benefits.

>> READ THE FULL DOCUMENT BELOW:

Bennett waived indictment, pleaded not guilty and was released on $10,000 bail after a Monday court appearance, The Associated Press reports. In federal court, waiving indictment is often a prelude to a defendant pleading guilty.

A hearing is set for Jan. 21 for Bennett to enter a guilty plea, according to the U.S. Attorney’s Office for the Northern District of Georgia.

After pleading guilty, Bennett will need to pay back the money she is accused of fraudulently collecting.

She is the second state lawmaker to be charged with pandemic fraud in recent months.

Rep. Sharon Henderson, a Democrat who represents House District 113, was indicted on charges related to pandemic unemployment fraud in December.

Henderson is free on bail and remains in office. Republican Gov. Brian Kemp has not yet appointed a review commission to determine whether Henderson should be suspended from office after the indictment.

U.S. Attorney Theodore Hertzberg said in December that other Georgia state House members were being investigated in addition to Henderson. It’s unclear if more charges will follow in addition to Bennett.

Democrats are likely to start the session Monday with 79 members in the 180-member House. In addition to Bennett, Democratic state Rep. Lynn Heffner of Augusta resigned Monday, saying that her house was heavily damaged in 2024’s Hurricane Helene and that rebuilding has reached an “impasse,” casting doubt on whether Heffner could maintain residency in House District 130, which includes parts of Augusta.

Kemp must now call special elections to replace Bennett and Heffner. It’s unclear if their successors will be seated before the regular session ends.

Editor’s note: A previous version of this story incorrectly said Bennett was indicted. She was charged and has agreed to plead guilty, according to federal prosecutors.

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