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Longtime Georgia Dem Pleads Guilty to Fraud Charges for Collecting Unemployment Benefits During COVID

Anthony Gonzalez by Anthony Gonzalez
January 24, 2026
in Politics
0

A six-term Democratic lawmaker in Georgia has pleaded guilty to federal fraud charges after admitting she illegally collected unemployment benefits during the COVID-19 pandemic.

Former Georgia State Rep. Karen Bennett (D), 70, entered a guilty plea in federal court in Atlanta to one count of making false statements connected to a pandemic relief program.

The plea comes just weeks after Bennett stepped down from office, ending a long career in state politics.

Federal prosecutors said Bennett fraudulently applied for benefits under the Pandemic Unemployment Assistance program in May 2020. The PUA program was created to provide financial relief to workers affected by pandemic shutdowns who did not qualify for traditional unemployment insurance.

In her application, Bennett claimed she was unable to work due to COVID-19 restrictions. She listed two sources of employment: her position in the Georgia General Assembly and her role as a physical therapist with Metro Therapy Providers, a company she owned.

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Bennett told authorities that quarantine measures prevented her from operating her therapy business. Prosecutors said that claim was false.

According to court records, Bennett operated her business from a home office and did not rely on in-person patient interactions in the way she described. Investigators concluded that her work was not fully halted by pandemic restrictions, making her ineligible for the unemployment benefits she received.

As a result of the false statements, prosecutors said Bennett collected $13,940 in federal unemployment benefits and supplemental payments to which she was not entitled.

Bennett represented Georgia House District 94, which includes parts of DeKalb and Gwinnett counties in the Atlanta metropolitan area. The district covers communities such as Stone Mountain, Lithonia, Ellenwood, Redan, and portions of Snellville, per Trending Politics.

She served six terms in the Georgia House before retiring from office on January 1, 2026, ahead of the new legislative session.

During her time in office, Bennett served on multiple legislative committees, including Health, Agriculture, and Consumer Affairs. She also held leadership roles within the National Black Caucus of State Legislators and was involved in community health initiatives, including Affordable Care Act enrollment efforts with local churches.

Under the terms of her plea agreement, federal prosecutors agreed to recommend that Bennett not receive a prison sentence. Instead, they will seek full restitution of the $13,940, along with any applicable interest, to be paid back to the Georgia Department of Labor.

Before entering the guilty plea, Bennett faced a maximum possible sentence of up to five years in federal prison.

Her sentencing hearing is scheduled for April 15, 2026, at 10:30 a.m. before U.S. District Judge Eleanor L. Ross.

The case is part of a broader effort by federal authorities to crack down on fraud involving pandemic relief programs. Billions of dollars were distributed quickly during the COVID-19 crisis, and investigators have since identified widespread abuse across multiple programs.

Bennett’s guilty plea adds another elected official to the growing list of public figures prosecuted for exploiting emergency pandemic aid intended for Americans who genuinely lost their livelihoods during the crisis.

Ex-Georgia lawmaker Karen Bennett admits to lying to collect pandemic unemployment — weeks after resigning https://t.co/8hnLsHh2f8 pic.twitter.com/JQZS6Pcs88

— New York Post (@nypost) January 22, 2026
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