Dem Georgia lawmaker Karen Bennett indicted on Covid fraud charges

Karen Bennett, a Democrat and now-former state representative from Stone Mountain, was indicted Monday in the US District Court for the Northern District of Georgia. Federal prosecutors have accused Bennett of making false statements in connection with an application for Pandemic Unemployment Assistance (PUA), a federally funded program created to help workers whose employment was disrupted by the COVID-19 pandemic.

According to the indictment obtained by Atlanta News First, Bennett is accused of unlawfully receiving $13,940 after submitting a false benefits application in May 2020. She first applied for regular state unemployment insurance (UI) benefits in April 2020, but officials deemed her ineligible. Eligibility rules required applicants to be denied UI benefits before they could qualify for PUA.

The PUA program was designed to cover workers not typically eligible for standard unemployment benefits—such as self-employed individuals, gig workers, and independent contractors—if their ability to work had been directly impacted by the pandemic.

In her PUA application, Bennett reported that she worked for two employers: The Georgia General Assembly and Metro Therapy Providers Inc., a DeKalb County physical therapy business she owned.

Bennett allegedly stated that Metro Therapy was her primary occupation and her main source of income, claiming she provided in-home physical therapy services. She also reportedly said she was last able to work on April 10, 2020, and that pandemic restrictions prevented her from reaching her workplace or providing services.

The indictment claims Bennett stated she was unable to work because of a quarantine related to the public health emergency and that shelter-in-place policies made in-person services impossible. She reportedly indicated she could provide documentation supporting the claim that COVID-19 caused her unemployment. Federal prosecutors dispute Bennett’s claims, alleging that she was not actually prevented from working at Metro Therapy during the pandemic. Instead, they contend her role was primarily administrative and that she performed those responsibilities from her home office.

The indictment further alleges that Metro Therapy remained operational during the period Bennett claimed to be unable to work. Prosecutors say the therapists who provided services were able to resume working after only a brief disruption and that the business continued generating income. After her PUA claim was approved, Bennett allegedly submitted weekly online certifications requesting benefits. Prosecutors claim that although she disclosed receiving $300 per week from the Georgia General Assembly during those certifications, she did not report other income.

The indictment asserts Bennett repeatedly stated she had not received any payments from Metro Therapy or other employers besides the legislature and declared she was “able, available, and actively seeking work.” However, prosecutors allege that those claims were false. They argue Bennett was not actively seeking work, was not restricted by quarantine in a way that prevented her from working, and that Metro Therapy continued operating.

The indictment also claims Bennett failed to disclose she was employed by a church while collecting PUA benefits. Prosecutors allege she received a $905 paycheck each week from the church during the same period she was requesting unemployment payments. If convicted, Bennett would be required to repay the funds she is accused of collecting fraudulently.

Bennett’s indictment follows another recent case involving a sitting member of the Georgia House. Rep. Sharon Henderson, a Democrat representing House District 113, was indicted in December on charges tied to alleged pandemic unemployment fraud. Bennett served House District 94, covering parts of DeKalb and Gwinnett counties, from 2012 until she retired from the legislature on Jan. 1.