Michael Lohan allegedly scammed a young businessman into two fake business deals.
Lohan has been accused of using his famous daughter Lindsay Lohan as an incentive for budding entrepreneur Jason Squatriglia, 20, to invest $50,000 in two bogus investments, a cleaning product and a reality TV show called 'Racing With the Stars'.
The youngster - who made $200,000 as a teen selling rare coins on eBay - claims he was taken under Michael's wing with the promise of making some serious cash, but things soon turned sour.
Jason told the New York Post: "He promised me the world. He took me under his wing. At that point, I knew I was going to invest money with him, and I felt comfortable with him.
"While in LA, he kind of used Lindsay as bait. It captivated my attention. He tried to get me to invest more, as if to say, 'Look at my daughter. She's a big movie star.' "
Michael reportedly wooed impressionable Jason by letting him drive his Maserati and wear his Rolex watch, as well as landing him an exclusive party invite to David Hasselhoff's house.
The pair set up production company JaLo Ventures LLC with the intention of making a reality show about stars racing sportscars around Florida, and Michael also encouraged Jason to invest his dosh into a product called Vital Oxide.
Despite Jason's parents begging him not to enter into business with Michael, who spent three years in jail for insider trading, the eager teen sent his mentor $50,000 on October 22, 2012, but has never seen his investment returned.
Upon hearing Jason's claims Michael still texts him asking for more money, Michael scoffed: "This kid is twisting everything."
Michael - who calls Jason by the nickname 'Junior' - claims the show failed to be green lit because they couldn't find sponsors and says there has been no cash made on the cleaning product yet due to a delay in shooting an advert.
Tagged in Michael Lohan