An SF psychiatrist was sentenced in federal court on Wednesday to 120 days in jail and $1.4 million in restitution for plotting to get non-disabled clients federal benefits to which they were not entitled.
George Demetrius Karalis, 76, pleaded guilty Aug. 11 and was sentenced Wednesday by U.S. District Judge Charles Breyer, according to the U.S. Attorney's Office.
The SF psychiatrist's sentencing memo describes meetings between Karalis and undercover agents in which the defendant instructed his clients on how to obtain federal and state government benefits to which they were not entitled.
According to his plea agreement, Karalis admitted that between August 2015 and June 30, 2020, he treated U.S. Postal Service employees who were receiving Federal Employees Compensation Act (FECA) workers' compensation benefits for alleged stress and psychological disorders.
Karalis advised his non-disabled clients on how to continue receiving benefits to which they were not entitled. Karalis also admitted that he submitted false reports and certifications about his clients so that they could continue receiving FECA benefits.
He admitted that the total loss attributable to his conduct ranged between $550,000 and $1.5 million.
The psychiatrist also agreed to pay $1.4 million in restitution, $920,000 of which will be paid to the U.S. Postal Service and $480,000 to the California Employment Development Department.
With information from Bay City News.
You may be interested in: Redwood City police seek armed robbery suspect
