DRUGS FEAR ON GREEK KILLINGS

TWO Melbourne men found dead off the Greek coast could have been the
victims of a drug-related homicide.

Sources close to the investigation last night said Greek police believed
they could be innocent victims of the local trade.

It was still unclear how the two men were killed although family members
believe they were murdered in a contract killing gone wrong.

On June 3, a fisherman found George Karalis, 28, of Keilor East, and his
cousin George Loizos, 31, floating in the sea near Rafina, about 50km from
Athens.

According to unconfirmed reports, a Greek autopsy showed Mr Loizos had
suffered propeller wounds to his chest and may have been restrained at the
time of his death.

Mr Karalis's body was returned to Melbourne on Tuesday night, and the State
Coroner is investigating.

A Coroners' Court spokesman said: "Nothing has been determined yet as to a
cause of death or the circumstances surrounding the death.

"It's too early even to speculate."

The spokesman said it was not unusual for the body of a Victorian to be
returned home from overseas, despite any continuing police investigation
interstate or abroad.

"Usually in this type of case, (the return of the body) has been initiated
by a party other than police. Like the family for example," he said.

A cousin of both men, Mr George Milonas, said Mr Loizos, a film editor,
moved to Greece after growing up with Mr Karalis in Melbourne.

Mr Karalis, a building engineering student, left Australia for a working
holiday in America last November.

He then flew to Greece in May to spend time with Mr Loizos in Nea Makri,
north of Athens.

Mr Milonas confirmed that the pair borrowed a boat on June 2 to meet their
Australian uncle on the island of Euboea, but were last seen leaving for
Porto Bouphalo after the uncle failed to show up.

The two were found dead the next day.

Mr Milonas said he had spoken to Mr Karalis every few days during his trip.

"He left a message on my message bank on the Saturday before he died," he said.

"It was about 10 minutes long and he was just bagging me. He was such a
joker, a really good guy."

Mr Milonas said his cousin had met a girl in America and was very excited
about the relationship.

The girl, Heather, had bought an airline ticket to Athens to meet him just
hours before hearing of his death.

Immediate family heard of the death through reports on a Greek cable
television show. "The two Greek authorities handling the incident aren't
telling us much, other than that it may have been a contract killing, and
we only found out that through the Greek paper," Mr Milonas said.

Checked-by: (Joel W. Johnson)