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Former State Employee Sentenced to Prison for Stealing Disability Benefits
ATLANTA, Georgia – In a shocking case of betrayal, former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke has been sentenced to five years in federal prison for forging educational records and creating fake students with non-existent disabilities and illnesses. The scheme, which lasted for several years, resulted in the theft of over $1.3 million in disability benefits.
According to court documents, Lyke used her position as a counselor to invent fake students with non-existent disabilities and illnesses. She then forged medical, educational, and financial records to support her claim, and eventually received thousands of dollars in disability benefits.
The State of Georgia trusted Lyke to serve some of its most vulnerable citizens – Georgians with significant disabilities and illnesses. Instead, she betrayed that trust and masterminded a complex scheme to swindle the state out of over $1.3 million.
The sentencing of Lyke should serve as a warning to anyone who would abuse their position of trust to line their own pockets. The FBI and its partners will not tolerate such behavior and will continue to investigate and prosecute those who commit such crimes.
Lyke was sentenced to five years in federal prison for her crimes, which include conspiracy to commit fraud and theft of government funds. The case is a reminder that the state will not tolerate fraud related to the services and resources provided by the Georgia Vocational Rehabilitation Agency.
The sentence was handed down on March 20, 2024, in the Northern District of Georgia. Lyke was also ordered to pay $1,357,000 in restitution to the state of Georgia.
Defendant: Karen C. Lyke (formerly known as Karen C. Gregory)
Criminal Charges: Conspiracy to commit fraud and theft of government funds
City and State: Atlanta, Georgia
Date: March 20, 2024
Sentence: Five years in federal prison and $1,357,000 in restitution
Dollar Amount: $1,357,000
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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