The second member of the Georgia state House accused of falsifying information to obtain federal pandemic unemployment benefits has decided to step down amidst legal charges.

Karen Bennett, from Stone Mountain, located about 20 miles from Atlanta, is charged with one count of making false statements. As of this week, she is accused of unlawfully collecting $13,940, as reported by the Associated Press.

During her initial court appearance, Bennett chose to waive indictment and entered a not guilty plea. She was subsequently released on a $10,000 bond. In federal cases, waiving indictment often signals an impending guilty plea.

On Thursday, Bennett, a Democrat, announced her resignation from the role she has held since 2012, where she served parts of DeKalb and Gwinnett counties.

Karen Bennett, who represented Georgia’s House District 94, is now dealing with federal allegations of fraudulently claiming COVID-19 unemployment benefits. (Georgia House of Representatives)

“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,” Bennett wrote in a letter obtained by FOX 5 Atlanta. “Serving in this capacity has truly been a labor of love, and one I will deeply miss.” 

Prosecutors allege Bennett, who works as a physical therapist, lied when she claimed that in 2020, she was unable to work for her company, Metro Therapy Providers, due to quarantine restrictions. 

However, Bennett allegedly served in an administrative role within the company and worked from a home office, rather than providing therapy to clients, according to prosecutors. 

Additionally, prosecutors allege that Metro Therapy continued its operations after a brief disruption during the pandemic, and that Bennett failed to add she was receiving a weekly pay of $905 from the African Methodist Episcopal Church, where she served as a minister. 

Georgia Rep. Karen Bennett, D-Stone Mountain, files for re-election, March 3, 2014, in Atlanta.  (AP Photo/David Goldman, File)

Bennett is the second Democratic House member in Georgia to be charged with making false statements in order to receive federal funds, with prosecutors also charging. Rep. Sharon Henderson of Covington on charges of theft of government funds and making false statements in December.

Henderson is accused of illegally collecting $17,811 in federal unemployment benefits, and remains in office while free on bail. Republican Gov. Brian Kemp has yet to appoint a review commission to independently determine if Henderson should be suspended from her state position following last month’s indictment.

In the midst of the pandemic, the federal government utilized state employment systems to pay out special unemployment benefits to individuals who lost their jobs as a result of COVID-19.

Georgia Gov. Brian Kemp is seen during the World Economic Forum in Davos, Switzerland, on Jan. 17, 2024.  (Stefan Wermuth/Bloomberg via Getty Images)

Democrats are expected to begin the session on Monday with 79 members in the 180-member House, after Democratic state Rep. Lynn Heffner of Augusta also resigned earlier this week. Heffner revealed that her home had been severely damaged in 2024’s Hurricane Helene and that rebuilding has reached an “impasse,” potentially forcing her to move out of House District 130.

 Kemp must now call special elections to replace both Bennett and Heffner, but it is unclear if their replacements will be seated before the end of the regular session.

Bennett’s attorney did not immediately respond to Fox News Digital’s request for comment.