Former Georgia State Representative Karen Bennett has entered a guilty plea to one count of making false statements related to a pandemic relief program, as confirmed by federal prosecutors. The plea was submitted in a federal court in Atlanta, following her recent departure from a long-standing political career.
Bennett, 70, faced allegations of fraudulently applying for and receiving funds from the Pandemic Unemployment Assistance (PUA) program in May 2020. The PUA program was designed to extend financial aid to workers who were adversely affected by COVID-19 shutdowns and did not qualify for conventional unemployment insurance.
In her PUA application, Bennett claimed that she was unable to work due to the restrictions imposed by COVID-19. She listed her legislative role in the Georgia General Assembly and her position as a physical therapist with Metro Therapy Providers, a company she owned, as her sources of employment.
However, authorities found discrepancies in Bennett's claims regarding the operation of her therapy business. Court documents revealed that her business was conducted from a home office and did not necessitate in-person patient interactions to the extent she had stated. As a result, investigators determined that her professional activities were not sufficiently disrupted by the pandemic to qualify her for the unemployment benefits she claimed.
Consequently, Bennett wrongfully obtained $13,940 in federal unemployment benefits and additional payments. Representing Georgia House District 94, encompassing parts of DeKalb and Gwinnett counties in the Atlanta area, Bennett served six terms before retiring on January 1, 2026.
During her tenure, she actively participated in several legislative committees, including those focused on Health, Agriculture, and Consumer Affairs. She also played a pivotal role in community health initiatives, notably assisting local churches with Affordable Care Act enrollment.
As part of the plea agreement, prosecutors have recommended that Bennett not serve a prison sentence. Instead, they are advocating for full restitution of the improperly acquired funds, including any applicable interest, to be returned to the Georgia Department of Labor.
Before the guilty plea, Bennett could have been sentenced to a maximum of five years in federal prison. Her sentencing hearing is scheduled for April 15, 2026, before U.S. District Judge Eleanor L. Ross.
This case is indicative of the broader attempts by federal authorities to address the issue of fraud within pandemic relief programs. Given the rapid distribution of billions during the COVID-19 crisis, there have been widespread instances of abuse across various programs. Bennett’s admission adds to the list of officials who have been prosecuted for misusing emergency aid meant for Americans genuinely affected by the pandemic.
