The entertainer appeared at Leeds Crown Court on Monday (June 13) under his real name - Dene Michael Betteridge - alongside his wife, Karen.
The couple were due to be sentenced for benefit fraud, but the case could not be heard and was adjourned until June 27.
The Department of Work and Pensions (DWP) said Betteridge and his wife admitted benefit fraud offences at a previous hearing at Leeds Magistrates’ Court.
Betteridge claimed he was unable to work and had to use walking sticks or an electric scooter.
But investigators found that while he claimed he could not leave the house without assistance and could only walk a few feet, he was performing both as a solo singer and as part of the band.
Betteridge claimed £11,579.66 in Disability Living Allowance and Employment and Support Allowance and £13,667 in Council Tax and Housing Benefit, the DWP said.
Black Lace are best known for their hit song Agadoo and other party standards like Superman and Do The Conga.
Betteridge was not part of the original line-up, but joined in 1986.
In 2015 he appeared on the BBC TV talent show The Voice and has also appeared the ITV legal show, Judge Rinder.