January 9, 2026
Bennett appeared in federal court in Atlanta and pled not guilty.
Federal prosecutors have charged former Georgia state Rep. Karen Bennett with lying to collect pandemic-era unemployment benefits.
Bennett, a Democrat from Stone Mountain, was charged with one count of making false statements to obtain Pandemic Unemployment Assistance, the Associated Press reported. Prosecutors allege she collected $13,940 in pandemic benefits while she was not eligible.
Bennett appeared in federal court in Atlanta and pleaded not guilty. Following her plea, the judge released her on a $10,000 unsecured bond. According to prosecutors, Bennett certified in 2020 that she could not work because of pandemic-related restrictions. Court documents allege she continued working while receiving unemployment benefits and failed to disclose income during that period.
The alleged fraud centered on statements Bennett made while expanded federal unemployment programs were in effect during the COVID-19 pandemic. Bennett owns Metro Therapy Providers, which provides in-person services. She alleged the government shutdown hindered her from providing services, thus leaving her unemployed. However, as the owner, Bennett’s managerial role was in-office and could be completed from home.
Bennett resigned from the Georgia House Jan. 1 as her case matriculates through the courts. She represented House District 94, which includes parts of DeKalb and Gwinnett counties. Georgia law requires the governor to call a special election to fill Bennett’s vacant seat.
Her case follows a Georgia state House lawmaker who is also under scrutiny for pandemic fund fraud. In December 2025, state Rep. Sharon Henderson was indicted on separate federal charges alleging she, too, improperly obtained pandemic unemployment benefits. Allegedly, Henderson listed the Henry County School System as her place of employment. Though she had indeed worked as a substitute in the county, she was inactive during the pandemic. Furthermore, the last time Henderson worked for Henry County was in 2018, two years prior, according to the Office of the Inspector General.
Federal authorities have pursued numerous cases nationwide tied to fraud involving pandemic relief programs, including the expanded unemployment assistance enacted by Congress in 2020. Prosecutors say those investigations remain ongoing.
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