Former Georgia Lawmaker Faces Federal Charges Over Unemployment Fraud

Fri Jan 09 2026 09:15:45 GMT+0200 (Eastern European Standard Time)

Karen Bennett, a former Democratic state House member, has been indicted for allegedly lying to collect federal unemployment benefits during the COVID-19 pandemic. This marks the second case in Georgia involving a lawmaker accused of similar fraud.

Federal prosecutors have charged Karen Bennett, a former Georgia state House member, with making false statements to illegally collect $13,940 in unemployment benefits. Bennett, who resigned her position last week, is the second former lawmaker linked to unemployment fraud, following the indictment of Rep. Sharon Henderson in December. Both cases raise questions about accountability and oversight among public officials amid the pandemic.

ATLANTA (AP) — Karen Bennett, a former Georgia state House member, has been charged with lying to collect federal unemployment benefits during the pandemic. The charges were filed by federal prosecutors, who allege that Bennett falsely claimed she was unable to work due to quarantine restrictions. In reality, they argue that her role was administrative, allowing her to work from her home office for her company, Metro Therapy Providers.

Bennett has been released on a $10,000 bond after pleading not guilty to one count of making false statements to collect $13,940 in unemployment benefits. Her court appearance on Monday followed her resignation from the House earlier last week. Having served since 2012, Bennett represented a district that spans parts of Dekalb and Gwinnett counties.

This case is part of a larger investigation into unemployment fraud among Georgia lawmakers. She is the second Democratic lawmaker to face such charges; Rep. Sharon Henderson was indicted in December for similar accusations of theft of government funds after allegedly collecting $17,811 in unemployment benefits without legitimate grounds. Henderson remains free on bail and continues to serve in her position.

U.S. Attorney Theodore Hertzberg has mentioned that the investigation into other state House members continues, though it remains unclear if more charges will be forthcoming regarding Bennett's allegations.

Prosecutors argue that Bennett misrepresented her employment status while also failing to disclose that she was receiving payments totaling $905 weekly from her church, where she serves as a minister. This fraud occurs against the backdrop of special federal pandemic-related unemployment benefits, aimed at supporting those who lost work due to the COVID-19 pandemic.

With these developments, Georgia Governor Brian Kemp must now organize special elections to fill the vacancies left by Bennett and another resigning legislator, Rep. Lynn Heffner, who faced challenges with her residence after Hurricane Helene damaged her home.