Lindsay Lohan’s dad is again in trouble with the law. This charge however is quite unexpected even for him.
On Friday, Michael Lohan was arrested in Palm Beach, Florida on the charges of ‘patient brokering. Which means he accepted kickbacks for referring drug addicts to various treatment centers.
NBC News reported in 2017, that patient brokering is a huge issue in South Florida. Many centers that provide services for drug treatments are misusing the Affordable Care Act and targeting people with nice insurance covers and milking them as cash cows. They are not working on helping these patients but are charging exorbitant prices for counseling and unnecessary tests.
This is not the worst of it, these centers involve predators who are called “body brokers”. These people look for addicts that could have good insurance or could be young and can use their parent’s insurance. These people then get a bounty when they bring in or refer patients to these centers.
State Attorney Dave Aronberg shared with NBC that this is the crime that Michael Lohan is being charged with. He said, “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.”
As per court documents, Lohan using his company, Lola Recovery Ventures, received around $25,000 for referring addicts to Pride Recovery Center which is located in Delray beach in the years 2017 and 2018.
According to the warrant, one of the women that was referred by Lohan was his girlfriend. Patient records display that the woman’s initials were B.M. and she was admitted on May 4. 2018 and Lohan received a 5 grand check on the same date.
Lohan was charged after an owner of Pride was charged and confessed the names of other parties involved in the scheme. The warrant said, “This particular check stood out to [the informant] because he remembered Lohan asking him … to trust him (Lohan) and that he (Lohan) knows patient B. M.’s family and she … is going to be a cash pay patient.” The owner of Pride shared this with the police.
The owner told the police that this lady was provided a treatment scholarship because she “had a sexual relationship with Lohan and that was why she was offered the scholarship.”
Lindsay Lohan’s father has had previous run-ins with the system. The first time he was convicted, it was for insider trading and he did go to prison for it. He has also been arrested for assault, DUI, and skipping on bills. He was last arrested in February, last year for assaulting his wife, Kate Major.
Michael is facing charges for patient brokering and conspiracy to commit patient brokering. If he is convicted, there is no saying how long his prison stint would be.