Second Georgia Lawmaker Charged in Pandemic Unemployment Fraud Scheme

Fri Jan 09 2026 08:26:32 GMT+0200 (Eastern European Standard Time)

Former Georgia state House member Karen Bennett faces federal charges for allegedly lying to collect over $13,900 in unemployment benefits during the COVID-19 pandemic. Alongside another indicted representative, the case raises concerns about fraudulent claims among state officials.

Karen Bennett, a former member of the Georgia state House, has been indicted for allegedly making false statements to collect federal unemployment benefits. She is accused of lying about her job situation to collect $13,940, while another lawmaker, Sharon Henderson, faces similar charges. Both cases highlight the scrutiny on pandemic-era assistance claims among government officials. Bennett has resigned from her post and other lawmakers are reportedly under investigation.

ATLANTA (Civitas) — Karen Bennett, a former state House representative from Georgia, has been accused of fraudulently obtaining federal unemployment benefits during the COVID-19 pandemic.

Federal prosecutors announced charges against Bennett on Monday, citing one count of making false statements to secure $13,940 in unemployment assistance. Following her initial court appearance, Bennett pleaded not guilty and was released on a $10,000 bail.

Bennett, a Democrat from Stone Mountain, resigned from her position in the House earlier this week. She had served since 2012, representing parts of DeKalb and Gwinnett counties.

This incident marks the second time a Georgian lawmaker has faced such allegations; Sharon Henderson, a fellow Democrat, was indicted in December for allegedly collecting $17,811 in unemployment through false claims. Henderson remains in office on bail, and there are currently discussions regarding the potential suspension of her duties.

U.S. Attorney Theodore Hertzberg mentioned that several other state House members might also be investigated, although it is unclear if additional charges will come against Bennett or others. Prosecutors assert that Bennett misrepresented her employment status, claiming she could not work while quarantined, when in reality, she held an administrative role with Metro Therapy Providers, a company she founded that continued to operate during the pandemic.

Moreover, authorities indicate that Bennett failed to disclose another source of income, receiving $905 weekly from church employment while also claiming unemployment benefits from the government.

The special unemployment benefits were intended for individuals who lost work due to COVID-19 and required weekly claims affirming ongoing unemployment. With the recent developments, Democratic leadership in Georgia now faces a challenging landscape, as they must also address the resignations of Bennett and another representative, which could alter the balance of power in the House.