Lindsay Lohan’s Father Arrested in Florida for Referring Patients to Rehab Centers

Michael Lohan, the father of actress Lindsay Lohan, has been taken into custody in Florida on charges of “patient brokering.”

This accusation suggests that he was involved in bringing individuals struggling with addiction to drug treatment facilities in exchange for unlawful kickbacks.

NBC News has obtained and reviewed the charging documents detailing the allegations against him.

According to these documents, Michael Lohan, 60, was arrested on Friday as part of an ongoing investigation conducted by the Palm Beach County authorities, led by State Attorney Dave Aronberg.

This probe focuses on the treatment industry in the area and has resulted in the arrest of over 100 individuals.

Lohan is facing five counts of patient brokering and one count of attempted patient brokering.

The charging documents also reveal that there are references to checks amounting to more than $25,000, which were allegedly paid to Lohan as part of this scheme.

State Attorney Dave Aronberg emphasized the significance of this case, stating that Mr. Lohan was investigated by their Sober Homes Task Force.

He added that the charge against Lohan involves receiving kickbacks for referring patients to drug treatment centers.

Aronberg stressed that such illegal activities corrupt the healthcare system, prioritizing financial gain over the needs of patients.

This marks the 117th arrest made by the task force, and according to Aronberg, it will not be the last.

As of now, Lohan's attorney, Heidi Perlet, has not responded to requests for comments regarding the matter.

The investigator mentioned in the charging documents had a conversation with Lohan on April 8, 2021, during which Lohan denied any involvement in patient brokering.

South Florida has earned the reputation of being the “recovery capital of the world,” attracting thousands of addicts from all over the United States.

Many hope to find effective treatment at the numerous drug rehabilitation centers in the region.

However, an NBC News investigation conducted in 2017 uncovered that these vulnerable individuals were often treated as profit sources rather than patients.

Some treatment centers collaborated with “body brokers” and operators of “sober homes” to locate patients with comprehensive health insurance coverage.

In exchange for attending specific treatment centers, these brokers and sober home owners offered incentives such as free rent, gift cards, cigarettes, and manicures.

The treatment centers then paid kickbacks for each referred client.

Once patients were enrolled, these treatment centers would bill their insurance providers exorbitant amounts for questionable counseling sessions, expensive and possibly unnecessary drug screenings, and elaborate laboratory tests.

State Attorney Dave Aronberg, in 2017, remarked that the entire industry had been corrupted by the allure of easy money.

Unscrupulous individuals took advantage of well-intended federal laws, particularly the Affordable Care Act and the Mental Health Parity Act, which were meant to ensure proper care for those struggling with addiction.

These laws required insurers to cover substance abuse treatment, prohibited the rejection of individuals with preexisting conditions, and enabled young people to remain on their parents' insurance until the age of 26.

However, the lack of oversight allowed for abuse.

The opioid epidemic provided scammers with a pool of desperate individuals, many of whom were young and addicted to pills or heroin, as well as access to substantial insurance funds.

This led to the involvement of various entities in the business.

In Palm Beach County, substance abuse treatment was once a modest network of centers and sober homes barely making ends meet.

By 2017, it had transformed into a billion-dollar industry, according to calculations by the Palm Beach Post.

Aronberg described this situation as a complete scam, with taxpayers footing the bill while unnecessary deaths occurred due to the exploitation of vulnerable individuals.

The unethical actions and illegal activities of scammers have made it challenging for legitimate treatment centers and sober homes to thrive.

John Lehman, the director of the Florida Association of Recovery Residences, an industry organization overseeing sober homes, expressed concerns that the negative reputation associated with these scams was negatively impacting ethical establishments.

Meanwhile, the unscrupulous actors were allowing drug use within their facilities.

In conclusion, the arrest of Lindsay Lohan's father, Michael Lohan, for alleged patient brokering in Florida sheds light on the corruption within the treatment