Phoenixville doctor charged with tax fraud

Posted: March 29, 2014

A Phoenixville doctor has been charged with federal tax fraud for allegedly pocketing millions he earned from online prescription sales but never reported as income.

In an indictment unsealed Thursday, the U.S. Attorney's Office in Philadelphia said Elias Karkalas earned about $2.5 million from prescriptions to patients he never met or examined.

Karkalas, 64, a primary-care doctor, operates Upper Merion Family Practice in King of Prussia. No attorney was listed for his case, and calls to his practice were not returned Thursday. He was arrested Wednesday, prosecutors said.

From 2005 to 2011, according to prosecutors, Karkalas authorized more than 750,000 prescriptions to customers seeking drugs through online-pharmacy services. He received payments for the prescriptions, but never reported the income, the indictment alleges.

Karkalas was charged with interference of internal revenue laws, failure to file tax returns, and filing false returns.

If convicted, Karkalas faces 15 years in prison or a fine of up to $1.3 million. He may also be ordered to pay restitution to the IRS, prosecutors said.


asteele@phillynews.com

610-313-8113 @AESteele

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