The father of actress Lindsay Lohan has been arrested.
Michael Lohan has been accused of a practice called “patient brokering,” NBC News reported.
It’s a scam where addicts are taken to drug treatment centers for illegal payment from the center.
Lohan is listed as president of Lola Recovery Ventures, WPEC reported.
He is one of more than 100 people recently arrested in a Palm Beach County investigation of the drug treatment center industry by the state’s Sober Homes Task Force.
He’s been charged with five counts of patient brokering and one count of conspiracy to commit patient brokering, according to court documents shared by WPEC.
Court records claim he was paid more than $25,000.
Charging documents show that an investigator spoke with Lohan earlier this month, but he denied any role in the scheme.
NBC News reported South Florida is called the “recovery capital of the world,” a mecca for addicts from all over the country for hopes of getting clean. But some centers work with “body brokers” to match sober homes with patients who have good health insurance coverage. The owners of the homes then will help persuade the people who are looking for help with free rent, gift cards, cigarettes and manicures, then turn around, charging the health insurance companies high prices for counseling, drug screening, and lab tests that the patients may not need.
For the latest list of certified recovery residences compiled by the Florida State Attorney’s Office, click here.