If the chief was eventually/has always been in on it, then Sean was very quickly out of danger of being locked away for crimes they thought he was involved in unless he's the Lex Luthor of Santa Barbara and has been involved with every crime he has so called solved.
Karen was pregnant in season 1.
Pregnant women, opposed to pregnant men, are all crazy people.
Saner than regular women, but still crazy.
Surely if Chief Vic believed that anyone who claims to have psychic powers might be able to close cases that she should be hiring more psychics, by the pound and the bushel.