CENTRAL ISLIP, N.Y., June 22 (UPI) -- Actress Lindsay Lohan's uncle, Paul Sullivan of Old Bethpage, N.Y., was arrested on charges he scammed $132,000 from a Sept. 11, 2001, disaster relief loan.
Inspectors for the U.S. Postal Service and Small Business Administration accused the teen star's 47-year-old maternal uncle of taking money from a $650,000 SBA loan that was intended for creditors and putting it in his own business account.
Federal authorities arrested Sullivan on the mail fraud charges Tuesday. He was released on $250,000 bond by a federal judge in Central Islip, N.Y., the New York Post reported.
Last month, Lohan's father, Michael, was sentenced to four years in prison for drunken driving, assaulting another brother-in-law and contempt of court.
Lohan has starred in movies such as "Herbie Fully Loaded," for which Lohan said she toned down her party-girl conduct at the request of Disney officials.
