SF psychiatrist sentenced to prison and fined $1.4 million dollars for fraud

SF psychiatrist received sentence

On Wednesday, an SF psychiatrist was sentenced in federal court to serve 120 days in prison and pay restitution of $1.4 million. This is because he concocted a scheme to get nondisabled clients federal benefits to which they were not entitled.

Thus, George Demetrius Karalis, 76, pleaded guilty on Aug. 11 and was sentenced Wednesday by U.S. District Judge Charles Breyer, according to the U.S. Attorney's Office.

The memo in which the SF psychiatrist was sentenced 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 filed false reports and certifications about his clients so that they could continue to receive FECA benefits.

He admitted that the total loss attributable to his conduct ranges from US$550,000 to US$1,500,000.

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.

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