Karen C. Lyke, Disability Benefits Fraud, Georgia 2023

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Former State Employee Charged with Disability Benefits Fraud

ATLANTA, Georgia – A former counselor with the Georgia Vocational Rehabilitation Agency has been charged with forging educational records and creating fake students with non-existent disabilities to steal over $1.3 million.

Karen C. Lyke, 61, of Norcross, Georgia, was charged with conspiracy to commit wire fraud and theft of government funds. According to U.S. Attorney Ryan K. Buchanan, Lyke allegedly orchestrated a sophisticated, long-term scheme to fleece taxpayers of more than $1.3 million through doctored records and the creation of fake students with non-existent disabilities.

Between 2017 and 2020, the GVRA annually received at least $100,000,000 in federal funds. The GVRA’s Vocational Rehabilitation Program helped people with disabilities to find and maintain employment, including by providing funding and tuition assistance for college education. However, Lyke allegedly used her position to create fake students with non-existent disabilities and illnesses in order to receive tuition assistance for herself and a close relative.

According to the indictment, Lyke and a close relative allegedly conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Lyke and the relative used the names of actual friends and relatives as the fake students, and created fake educational records to support their claims.

The charges were announced by U.S. Attorney Ryan K. Buchanan, FBI Atlanta Special Agent in Charge Keri Farley, and Georgia State Inspector General Scott McAfee. The case is being investigated by the FBI and the Georgia Office of Inspector General.

Lyke was charged by indictment on November 30, 2022, and is currently scheduled to appear in court on January 9, 2023, for a preliminary hearing. If convicted, Lyke faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.

The Georgia Vocational Rehabilitation Agency is committed to protecting the interests of Georgia’s taxpayers and our constituents. Therefore, we notified the Georgia Office of Inspector General as soon as we suspected fraud in this matter,” says GVRA Executive Director, Chris Wells.

By exploiting her position with the Georgia Vocational Rehabilitation Agency, Lyke allegedly orchestrated a sophisticated, long-term scheme to fleece taxpayers of more than $1.3 million through doctored records and the creation of fake students with non-existent disabilities.

Karen C. Lyke, 61, of Norcross, Georgia, was charged with conspiracy to commit wire fraud and theft of government funds. Lyke faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years.