Michael Lohan, 60, was taken into custody in Palm Beach on Friday on five counts of patient brokering and one count of attempted patient brokering
Lindsay Lohan’s father has been arrested in a Florida ‘patient brokering’ scheme for allegedly bringing drug addicts into rehab clinics in exchange for $25,000 in illegal kickbacks.
Michael Lohan, 60, was taken into custody in Palm Beach on Friday on five counts of patient brokering and one count of attempted patient brokering.
He is among the 100 people who have been arrested so far as part of a state-wide investigation into patient brokering in rehab treatment centers across Florida.
Lohan, who is listed as the president of Lola Recovery Ventures, has been accused of bringing drug addicts to treatment centers in exchange for illegal kickbacks.
At least nine checks totaling $27,750 were made out to Lohan, Lola Recovery or Lola Recovery Ventures, according to court documents.
State attorney Dave Aronberg, who is leading the probe, told NBC News: ‘Mr Lohan was investigated by our Sober Homes Task Force and he’s being charged with receiving kickbacks for referring patients to drug treatment.
‘Patient brokering corrupts our health care system because decisions are motivated by greed instead of a patient’s needs. This is our Task Force’s 117th arrest and will not be our last.’
Lohan is accused of referring multiple patients to the Pride Recovery facility in Delray Beach between 2017 and 2018.
Pride Recovery is a substance abuse treatment facility that offers partial hospitalization and intensive outpatient programs.
Lindsay Lohan’s father is among the 100 people who have been arrested so far as part of a state-wide investigation into patient brokering in rehab treatment centers across Florida. They are pictured together in 2002
An owner of Pride Recover is among one of the 100 people who have already been arrested in the scheme and is now a cooperating witness in the investigation.
That witness told investigators he had first been introduced to Lohan back in December 2017 by his business partners and they met to discuss him working with Pride Recover.
According to court documents, the witness had expressed reservations about paying Lohan for patient referrals.
Lohan started referring patients to Pride Recovery shortly after the meeting took place.
The witness admitted to investigators that he was involved in an illegal patient brokering agreement with Lohan.
A total of nine checks were written to Lohan, or Lola Recovery Ventures, for referring patients to Pride Recovery, investigators said.
Investigators were given a list of patients that Lohan referred to the facility.
The witness said the checks were not always for one patient and that there was no agreement for a set price per referral.
Investigators received medical records for Pride Recovery via a search warrant last month.
On multiple patient questionnaires that asked how they had heard about the facility, the patients wrote: Michael Lohan.
One of the patients who was interviewed by investigators said her mother was friends with Lohan.
Lohan called investigators on March 3 to ask why they were asking questions about him. He told them the patient’s mother had informed him of the interview and that he did marketing for Pride Recovery.
Lohan denied being paid for patient referrals and insists the payments were for marketing work.