Another day, another arrest of a Democratic Party leader over massive COVID-19 fraud.
Former Georgia state Rep. Karen Bennett was indicted Monday on federal charges of making false statements to fraudulently obtain COVID-19 unemployment benefits, making her the second Georgia Democrat lawmaker charged with pandemic fraud in just weeks.
A federal grand jury in the U.S. District Court for the Northern District of Georgia charged Bennett with one count of making false statements after prosecutors say she collected $13,940 in Pandemic Unemployment Assistance benefits she was not entitled to receive.
Bennett, a Democrat who represented House District 94 covering parts of DeKalb and Gwinnett counties, resigned from the legislature effective January 1, just four days before the indictment was filed Monday. She had served in the Georgia House since 2012.
U.S. Attorney Theodore Hertzberg said Bennett applied for unemployment benefits in April 2020, shortly after the federal government expanded benefits during the COVID-19 pandemic through the Pandemic Unemployment Assistance program. Her initial application for regular unemployment insurance on April 30, 2020, was denied.
In May 2020, Bennett 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 PUA application, Bennett claimed her work at Metro Therapy consisted of providing in-home physical therapy services and that it was her primary occupation and primary means of livelihood. She claimed she was last able to work on April 10, 2020, and certified she was unable to reach her place of employment because of quarantine restrictions and that her work had been significantly reduced due to the pandemic.
“In reality, Bennett was not prevented from performing her work for Metro Therapy or reaching her place of employment because of COVID-19 quarantine,” the indictment states.
“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,” the indictment says.
Once approved for PUA benefits, Bennett submitted online certifications every week for which she requested benefits from March through August 2020.
“In each of those certifications, while she stated that she was receiving $300 per week from the General Assembly, she disclosed no other income,” the indictment says.
Prosecutors allege Bennett failed to disclose she was receiving a separate paycheck of $905 per week from a church during the entire time she was claiming PUA benefits. Combined with her $300 weekly Georgia General Assembly income, prosecutors say Bennett was actually earning at least $1,205 per week.
Bennett pleaded not guilty to the charge and was released on a $10,000 bond Monday.
If convicted, Bennett could be required to forfeit money equal to the proceeds prosecutors say she obtained through the false statements. Federal authorities say they may also seize her property if the funds cannot be recovered.
In her resignation letter to Gov. Brian Kemp dated December 30, 2025, Bennett did not give a reason for her departure. The letter, which made no mention of the pending charges, praised her time in the legislature.
“It has been a distinct honor to serve the people of Georgia and the constituents of the 94th House District,” Bennett wrote. “I am proud of the work accomplished by the Georgia General Assembly when we came together to advance policies that strengthened our state and improved the lives of all Georgians. Serving in this capacity has truly been a labor of love, and one I will deeply miss.”
🚨DEM INDICTED🚨
Former Georgia State Rep. Karen Bennett (D) has been federally indicted on one count of making false statements in connection with fraudulently obtaining nearly $14,000 in COVID-19 pandemic unemployment relief funds.
She allegedly failed to disclose weekly… pic.twitter.com/Y8R22XjUWV
— Breanna Morello (@BreannaMorello) January 6, 2026
Bennett is the second Georgia state lawmaker charged with “scamdemic” fraud in recent weeks. State Rep. Sharon Henderson, a Democrat who represents House District 113, was indicted in December on similar charges related to COVID-19 unemployment fraud.
Prosecutors say Henderson falsely reported in her application that she worked for the school system throughout 2019 and as recently as March 10, 2020, and that her workplace had shut down because of the COVID-19 public health emergency. Henderson allegedly filed weekly certifications claiming she could not report to work due to COVID-19 quarantine restrictions while continuing to serve as an elected official. Prosecutors say Henderson illegally collected nearly $18,000 through her fraud.
Henderson has not resigned from her position in the legislature.