Lindsay Lohan’s uncle has been sentenced to one year and one day in federal prison for defrauding the U.S. government of terrorist relief funds.

Paul Sullivan was jailed on Thursday after pleading guilty to one count of mail fraud in April 2006 after pocketing $132,000 of a $650,000 loan from the Small Business Administration.

The 50-year-old brother of Lohan’s mother Dina claimed his car company lost business after terrorist attacks on New York’s World Trade Center on September 11, 2001.

Sullivan reportedly broke down in tears in the courtroom when the Long Island, New York judge delivered his sentencing.

He has also been ordered to pay back the $650,000 SBA loan.

Source

WENN

The Lohan family has suffered a loss.

Richard Lohan, Lindsay Lohan’s paternal grandfather, died Thursday after a battle with colon cancer, E! News has confirmed.

In an interview Tuesday, dad Michael Lohan told E! that his 73-year-old father’s declining health as the “real reason” he wasn’t making a big deal out of his recent engagement to longtime girlfriend Erin Muller.

Richard had been in failing health for some time, with Michael saying in March that the cancer had spread to his lungs. Lindsay had made plans to visit her granddad, who was hospitalized in Long Island, N.Y., over the Easter holiday.

And although arrangements surely have to be made, Michael still managed to use the opportunity to take another swipe at ex-wife Dina Lohan, who he has publicly accused of being a “two-face” for supposedly fretting about Lindsay’s lifestyle around him and then acting as if everything is fine-and-dandy around their daughter.

“My father just, literally, died in my arms,” he said in a statement to OK! magazine tonight. “I notified all my kids and my lawyer notified Dina’s attorney. Let’s see if she has the decency and respect to bring my kids to the wake and funeral. THIS will show her true colors!

“Thus, not even a call. But that’s par for the course with Dina! She didn’t even send a card or visit when he was sick.”

Dina Lohan has yet to respond to Michael’s recent slings and arrows, although Lindsay and gal-pal Samantha Ronson took time out to blog yesterday about his “concern” for their relationship.

“If he really cared about me and my life, then he would learn to respect my wishes by staying out of it,” Lindsay wrote, while Ronson called Michael “so desperate for attention that he goes to the media whenever possible.”

Source

WENN

Lindsay Lohan took to her Myspace blog to fire back at her father for all of the mean things that he’s said about Samantha Ronson and his addiction to fame:

DRUG FREE
Current mood: betrayed
Category: Life

If you have something to say to me, say it to my face- that’s what i have believed my whole life- don’t be a coward and say it to others first, let alone all the media in the world- i think we know where the rest of this blog is going…

If you guessed it had to do with my father- then you guessed right! It really hurts, because i have tried- after all that my mother and siblings have gone through, i really tried to make things work- For the hope of having a father again-wanting things to change- even though people have said, some people will forever remain the same.

Having said that- the people were right, and he is yet to change- but this time, without his daughter by his side- He has become a public embaressment and a bully- To my family, my co-workers, my friends, and a girl that means the world to me (its obvious who that is).

He has no idea what is going on in my life because i have chosen not to involve him in it- His recent attack on my life and my loved ones is simply for an ADDICTION THAT HE HAS- FAME. Why he feels the need to comment on anything in my life that i may want to keep private, is beyond comprehension- If he really cared about me and my life, then he would learn to respect my wishes by staying out of it.

Samantha has not and would never sell me out. Nor has my mother, who is wonderful.

This further proves that any information that my father has about me or the people in my life is internet based- and about as accurate as a page six item.

I’m not going to engage any further, though i probably could go on…

I have said enough, i have a therapist, and it is not the the camera man at x17.

WENN

After Michael Lohan really bashed Samantha Ronson for writing a book, she’s firing back. She took to her myspace page and has this to say:

SHUT THE F*** UP
Current mood: bullied

i really don’t want to say anything because i feel like he wins- he, being the man who is so desperate for attention that he goes to the media whenever possible- i know i am being used, i am just a pawn- easy to sacrifice in order to feed his addiction. I was angry when i first read his attack on me, but- for me- i believe that actions speak louder than words… so now i just pity him- i am not standing in his way- i am not the reason that he has no contact with his daughter- he is- his need to throw a tantrum for the whole world to hear is- i am not going to go into a play by play defense- i feel no need to publicly defend my role in lindsay’s life- i’m just sorry that she likes me more than him.

p.s. i’m not the one that is so lost that i need to use my relationship with lindsay to earn a living…. i am, always will and always have been here for her for her- not for anything else….so I think it’s safe to say that there is not now and never will be a tell all….. written by me….. when does your book come out mr. lohan?

Snap!

WENN

Lindsay Lohan hasn’t talked to her father, Michael Lohan, for some time, and the actress has turned to Access Hollywood to speak out against her big-mouthed dad.

Lindsay says she’s tired of Michael publicly commenting on her mom Dina, sister Ali, and friend Samantha Ronson, and finds it unfortunate that he turns to the media to get attention.

“He’s out of control,” she told Access from the set of “Ugly Betty,” where she’s filming several guest appearances for the ABC show’s third season.

“I want him to stop hurting and talking to the media about the people I love,” she said.

In an interview with E! on Tuesday, Michael said Samantha was “using” his daughter after hearing rumors that the DJ might be writing a tell-all book.

“I’ve shut up about this long enough,” Michael told E! “She’s using my daughter. People never even knew who Samantha Ronson was until she met Lindsay. She was just some L.A. DJ. And now she’s writing a book? I am at wit’s end with this stuff. This is not in Lindsay’s best interest.”

“Let’s just say I hope Lindsay starts opening her eyes and realizes who the people using her are,” he added.

Source

WENN

Lindsay Lohan’s dad, Michael, should be celebrating his pre-engagement bliss, but instead he’s worrying about his oldest daughter, Lindsay.

“I’ve been up and down the road (in discussions) with my ex-wife (Dina) and it’s to the point now that I’m going to confront Samantha and Jenny Muro (Lindsay’s production assistant) myself,” Michael says of why he is speaking out.

What has stirred Lohan’s ire? He feels Lindsay is drinking again and her partner, Samantha Ronson, is to blame.

“Samantha drinks and passes the drinks under the table to Lindsay, and behind the scenes it gets worse and worse,” says Lohan. “Sam is using my daughter. My daughter isn’t working because she’s always with Sam. Even my ex-wife knows it. She just isn’t doing anything about it.”

Lohan hasn’t yet decided how he’ll proceed with handling the situation, but he has begun taking responsibility in his own life.

A rep for Lindsay says, “This is totally a lie and untrue.”

He says he’s been in contact with Kristi Kaufman, who made the claim that Michael fathered her daughter some 13 years ago. “Kristi Kaufman has been called and we have agreed to go through a mutual lab (for a paternity test) over the next 30 days,” says Lohan.

He also chimed in on another scandal, that of John Edwards. “The only advice I can give anyone (in his situation) is be upfront, be honest and we have to try our best never to make the same mistakes again.”

Source

WENN

It was only two months ago that Lindsay Lohan discovered the shocking truth that she had a 13-year-old half-sister after OK! broke the news that her dad, Michael Lohan, had fathered a child with another woman while he was separated from LiLo’s mother, Dina Lohan. And now, OK! has confirmed with sources close to the Lohan family patriarch that the Georgia Rule actress, 22, will soon be gaining yet another family member — a stepmom.

“Michael recently proposed to his girlfriend Erin Muller,” the source reveals to OK!. “But they’re keeping it quiet for the moment.”

The pair may not be saying anything out loud, but the ring Erin was flashing last weekend at the Mercedez-Benz Bridgehampton Polo Tournament was screaming, “we’re engaged!”

Earlier this summer, the 48-year-old told the NY Observer about Erin, “She has a great family and I love her dad.”

Source

WENN