The estranged father of actor Lindsay Lohan was arrested on charges he illegally took money for referring patients to a substance abuse treatment centre.
Michael Lohan, 60, was held at the Palm Beach County Jail on five counts of patient brokering and one count of conspiracy to commit patient brokering, The Palm Beach Post reported.
Authorities said a Delray Beach-area drug treatment centre called Pride Recovery paid more than 27,000 dollars (£19,400) in kickbacks to either Lohan directly or to a business he was associated with, Lola Recovery Ventures of Palm Beach Gardens.
Under Florida law, it is illegal for a health care provider to pay a commission for the referral of patients.
The practice has been linked to numerous instances of fraud in which rehab centres get reimbursed for performing costly and unnecessary tests on patients who have health insurance.
Palm Beach County State Attorney Dave Aronberg said in a statement on Friday: “Patient brokering corrupts our health care system because decisions are motivated by greed instead of a patient’s needs.”
Mr Aronberg said Lohan is the 117th person arrested in connection with a task force’s ongoing probe into patient brokering in the area.
Lohan’s lawyer, Heidi Perlet, says her client denies Mr Aronberg’s allegations.
She said: “Michael Lohan has helped countless individuals suffering from addiction issues
“Michael should be applauded for his efforts in saving lives, not arrested for them.
“Michael is looking forward to having his day in court where the whole truth, not the narrative put forth by the State Attorney’s Office, comes out.”
