Looks like Lindsay Lohan’s uncle could soon be joining her dad in the lockup.
Paul Sullivan, brother to the teen queen’s mom, Dina, was arrested at his Long Island home Tuesday on suspicion of mail fraud involving funds intended for post 9/11 small business relief.
Federal prosecutors claim that Sullivan, the president of of an import-export business called the Ropa Group, misused part of a $646,900 loan he received from the U.S. Small Business Administration.
According to authorities, Sullivan deposited $131,600 into his own company’s account, despite the fact that the funds were intended for other small businesses. One loan check was made out to a European businessman, but Sullivan allegedly forged the man’s signature.
Sullivan was arraigned Tuesday in U.S. District Court in Central Islip, Long Island, and was released on $250,000 bond.
“Everything is fine,” Sullivan told the New York Daily News. “It’s a misunderstanding.”
This latest blot on Lohan’s family tree comes as the actress is busy promoting her new film, Herbie: Fully Loaded, which opened Wednesday.
Sunday’s premiere of the film had already resulted in a rather unpleasant surprise for the Confessions of a Teenage Drama Queen star, who threw a fit after discovering that “First,” the song she recorded for the Herbie soundtrack, was placed over the film’s closing credits rather than over the race sequence where she thought it would be.
Following the screening, the freckled starlet reportedly stormed into the lobby of the El Capitan Theater, fuming, “I’m so [angry]!”
Her team of handlers quickly ushered Lohan into the restroom for a 12-minute timeout. Once the actress cooled off, she explained her outburst at the party following the screening while signing autographs for fans.
“I was upset when I didn’t hear my song during the race scene, where I originally thought it would be,” Lohan told USA Today. “I was like, ‘Whoaaa,’ because nobody stays to hear the song in the closing credits.
“So I ran out.”
Lohan explained that the song is particularly important to her because, “I recorded it right before I got sick and went to the hospital. And then I shot the video for it and re-sprained my ankle. I pushed myself to get it done for the movie when I probably should have waited.”
The 18-year-old actress, who turns 19 on July 2, has certainly had her share of drama in recent months.
Last month, her father, Michael, was sentenced to four years in prison for drunken driving and violating the terms of his probation.
Though Lohan is publicly estranged from her paternal figure, she had kind words to offer him on Father’s Day.
“I hope he’s well. God bless him and I love him,” Lohan told reporters.
Earlier this month, the Mean Girls star was involved in a car crash after a paparazzo allegedly intentionally rammed her car.
Lohan walked away from the smashup with only cuts and bruises but said she was badly shaken by the incident. She has since banded with fellow A-listers such as Justin Timberlake and Cameron Diaz to try and crack down on the aggressive tactics of the paparazzi.
However, the actress is unlikely to drop off of the radars of celeb-hungry photogs any time soon.
Following Herbie, she’ll be seen in romantic comedies Just My Luck and Fashionistas, and she has several other projects in the works.