Karen Bennett, a former Georgia House member, pleaded guilty Wednesday to lying to collect federal pandemic unemployment benefits. The 70-year-old physical therapist fraudulently obtained $13,940 in federal assistance designed for those harmed by COVID-19. Bennett will repay the funds and faces sentencing in April.
The guilty plea marks the second pandemic unemployment fraud case against a Georgia Democratic House member in recent weeks, highlighting misuse of federal assistance that was intended to help people genuinely displaced by the pandemic.
Sentencing set for April
U.S. District Judge Eleanor Ross scheduled Bennett’s sentencing for April 15. Bennett’s lawyers requested sentencing Wednesday but the judge declined. Her lawyers said prosecutors agreed to recommend no prison time or supervised release. Bennett will repay the $13,940.
Bennett had waived her right to indictment before entering her guilty plea.
Second case compounds the problem
The case is the second pandemic unemployment fraud charge against a Georgia Democratic House member. Rep. Sharon Henderson, who represents Covington, was indicted in December on counts of theft of government funds and making false statements. She was accused of illegally collecting $17,811 in unemployment benefits.
Henderson remains in office. A review commission was scheduled to recommend to Governor Brian Kemp on Thursday whether she should be suspended from office pending trial.
Details of the fraud scheme
Prosecutors said Bennett, a physical therapist, lied in 2020 when she claimed that quarantine prevented her from working for Metro Therapy Providers, a company she owned. In reality, her role was administrative and she worked from a home office instead of providing therapy to clients. Prosecutors said Metro Therapy continued operating and generating income after a brief disruption.
Bennett also failed to disclose that she was receiving $905 in weekly pay from a church, where she has served as a minister in the African Methodist Episcopal Church.
Prosecutor’s statement
“Bennett was elected to represent her fellow citizens and took a solemn oath to promote the best interests and prosperity of the state of Georgia,” U.S. Attorney Theodore S. Hertzberg said. “Instead, she violated that oath and, during an unprecedented emergency, lied to line her own pockets with taxpayer money intended to help community members in need.”
Election and broader context
Bennett resigned from the Georgia House before being charged. She had been first elected in 2012. Governor Kemp called a March 10 special election to replace her in House District 94, which includes parts of DeKalb and Gwinnett counties. If no candidate wins a majority, a runoff would follow April 7.
The federal government distributed special pandemic unemployment benefits to people who lost jobs because of COVID-19. Applicants were required to certify each week that they remained unemployed to claim the benefits.