Former Georgia House member pleads guilty to pandemic unemployment fraud

The guilty plea

Karen Bennett, a former Georgia House member first elected in 2012, pleaded guilty Wednesday to making false statements to collect federal pandemic unemployment benefits. The 70-year-old admitted in U.S. District Court that she falsely claimed to be prevented by quarantine from working for Metro Therapy Providers, a company she owned. U.S. District Judge Eleanor Ross declined Bennett’s lawyers’ request for immediate sentencing, instead scheduling the hearing for April 15.

Bennett collected $13,940 in federal pandemic unemployment assistance she was not entitled to receive. According to court documents, she has agreed to repay $13,490. Her lawyers asked prosecutors to seek no prison time or supervised release.

The false quarantine claim

Prosecutors said Bennett’s claim that quarantine prevented her from working mischaracterized her actual role at Metro Therapy Providers. In reality, her position was administrative, performed from her home office, rather than providing direct therapy to clients. Prosecutors alleged that Metro Therapy continued operating and generating income after a brief disruption, contradicting Bennett’s assertion that the pandemic prevented her from working.

Undisclosed income from the church

Bennett also failed to disclose income she was receiving during the same period. She was receiving $905 per week in pay from a church where she serves as a minister in the African Methodist Episcopal Church. Unemployment benefits applications require applicants to certify each week that they remain unemployed and to report all income. Bennett did not disclose the church payments.

The attorney’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.”

Political aftermath and election

Bennett resigned from the Georgia House just before being charged. Gov. Brian Kemp called a special election for March 10 to fill her seat in House District 94, which includes parts of DeKalb and Gwinnett counties. If no candidate wins a majority, a runoff is scheduled for April 7. The state legislative session is set to end April 2.

A broader pattern of fraud charges

Bennett is the second Democratic Georgia House member to be charged with fraudulently obtaining pandemic unemployment benefits. Rep. Sharon Henderson, a Covington Democrat, was indicted in December on charges of theft of government funds and making false statements. She is accused of illegally collecting $17,811 in unemployment benefits. Henderson remains free on bail and has not resigned from office. A review commission is scheduled to recommend to Gov. Kemp whether Henderson should be suspended pending trial.

The federal government distributed special unemployment benefits during the pandemic through state systems to people who lost their jobs because of COVID-19. As with regular unemployment benefits, applicants had to certify each week that they remained unemployed to claim the assistance.