A former Georgia state lawmaker, who allegedly lied to collect pandemic unemployment benefits she was not entitled to receive, has been indicted in federal court.

According to court documents filed in the U.S. District Court for the Northern District of Georgia, Karen L. Bennett, who represented Georgia House District 94 in parts of DeKalb and Gwinnett counties, is charged with making false statements to obtain COVID-19 relief unemployment funds.

Federal prosecutors say Bennett applied for unemployment benefits in April 2020, shortly after the federal government expanded benefits during the COVID-19 pandemic through the Pandemic Unemployment Assistance, or PUA, program. The program was designed to help individuals who lost their jobs due to the pandemic and did not qualify for traditional unemployment benefits.

Court records show Bennett first applied for regular unemployment insurance on April 30, 2020, but her application was denied. Prosecutors say she then applied for PUA benefits, which required applicants to certify they were unable to work because of a COVID-19-related reason.

In her PUA application and weekly certifications, Bennett claimed she was unable to reach her place of employment because of quarantine restrictions and that her work had been significantly reduced due to the pandemic. She also certified that the information she provided was true and acknowledged that false statements could result in criminal prosecution.

However, federal prosecutors allege those statements were false.

According to the criminal information, Bennett was able to continue working from her home throughout the pandemic to support Metro Therapy, and the business continued operating and receiving income after a brief disruption. Prosecutors say she was not prevented from working due to COVID-19 and was not actively seeking work during the weeks she claimed benefits.

Court documents also state Bennett failed to disclose additional income while collecting PUA benefits. Prosecutors allege she earned $300 per week from the Georgia General Assembly and also received a separate paycheck of $905 per week from a church during the same period, income they say she did not report.

Federal records show Bennett submitted weekly benefit certifications from March through August 2020. As a result of those applications and certifications, prosecutors say she received a total of $13,940 in PUA benefits and federal unemployment supplements she was not entitled to receive.

On January 1, Bennett retired from her role as the State Representative for House District 94, notifying Georgia Governor Brian Kemp in a letter dated December 30, 2025.

"It has been a distinct honor to serve the people of Georgia and the constituents of the 94th House District," Bennett wrote. "I am proud of the work accomplished by the Georgia General Assembly when we came together to advance policies that strengthened our state and improved the lives of all Georgians. Serving in this capacity has truly been a labor of love, and one I will deeply miss."

Bennett is charged with one count of making false statements in violation of Title 18, United States Code, Section 1001. The charge stems from an online certification submitted on or about Aug. 13, 2020, for the week ending Aug. 8, 2020. Prosecutors allege Bennett falsely stated she earned only $300 that week, was actively seeking work, and experienced reduced services due to COVID-19, when she allegedly earned at least $1,205 and continued working.

If convicted, Bennett could be required to forfeit money equal to the proceeds prosecutors say she obtained through the false statements. Federal authorities also say they may seek forfeiture of additional property if the funds cannot be recovered.

The case is being prosecuted by the U.S. Attorney's Office for the Northern District of Georgia.

Georgia State Representative Sharon Henderson is also facing federal charges after investigators say she illegally collected nearly $18,000 in pandemic unemployment benefits while serving as an elected official. 

Investigators say Henderson falsely reported in her application that she worked for the school system throughout 2019 and as recently as March 10, 2020, and that her workplace had shut down because of the COVID-19 public health emergency. She then allegedly filed weekly certifications claiming she could not report to work due to COVID-19 quarantine restrictions.