Michael Lohan Jr., the younger sibling of actress Lindsay Lohan, finds himself embroiled in a legal battle, as New York Attorney General Letitia James has filed a lawsuit against him and several associates. The suit accuses them of engaging in real estate fraud involving 159 rental apartments.

The 37-year-old Lohan has been singled out for his connection to Peak Capital, a firm alleged to have unlawfully deregulated rental units to maximize profits. The company is charged with deliberately deceiving tenants, investors, and state authorities, according to a recent statement from New York officials.

This legal action follows the initiation of a lawsuit by Attorney General James in conjunction with New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas. The lawsuit seeks restitution of overcharged rents, punitive damages, enforcement of rent stabilization for the affected units, penalties for legal violations, and the appointment of an independent administrator to examine Peak Capital’s entire portfolio for illicit practices.

The lawsuit was officially filed on December 1 following an investigation by the Attorney General’s office alongside HCR’s Tenant Protection Unit (TPU). This investigation concluded that Peak Capital, with ties to Lohan, orchestrated a misleading scheme to sidestep New York City’s rent stabilization laws, effectively overcharging tenants and increasing their financial gain.

State officials said the lawsuit was filed December 1 after a joint probe from James’ office and HCR’s Tenant Protection Unit (TPU), determining that the Lohan-affiliated company, Peak, ‘orchestrated a deceptive scheme to bypass New York City’s rent stabilization laws in order to rent apartments at inflated rents and make more money. 

The Daily Mail has reached out to Michael Jr., Lindsay and her reps for further comment on the story. 

Lindsay Lohan’s younger brother Michael Lohan Jr. has been named in a lawsuit from New York Attorney General Letitia James claiming he and a group of associates perpetrated illegal acts of real estate fraud toward renters of 159 apartments. Pictured 2013 in NYC 

‘It is no secret that New York City is already battling an affordable housing crisis, and yet Peak and its operators still chose to line their own pockets at New Yorkers’ expense,’ James said in a statement. 

The attorney general said that the group of ‘bad actors illegally raked in profits,’ and  ‘affordable housing in New York grew even more scarce, and that is unacceptable.’

James made clear the legal filing was meant to take a bold stance against predatory real estate practices in New York. 

‘Let this lawsuit be a warning: when corporate developers and bad landlords try to cheat housing laws, my office will always take aggressive action to stop them.’

Visnauskas said that ‘HCR’s Tenant Protection Unit, in partnership with the Office of the Attorney General, conducted an extensive investigation resulting in a lawsuit against Peak Capital Advisors for improperly deregulating dozens of buildings in New York City.

‘The investigation showed that none of these Peak properties met legal requirements for deregulation.

The commissioner continued: ‘We look forward to returning these buildings to their proper status under the rent stabilization law. HCR’s Tenant Protection Unit and the Office of the Attorney General will not allow unlawful profiteering and deregulation.’

Also named in the suit with Lohan’s brother are Juan David Gomez, Alex Rabin, Amnay Labou, Bryan Anderson, Alex Kaskel, and Alex Mendik, officials said. 

According to a biography on Nineteen Blocks website, Michael serves as the organization’s managing partner and wears a number of important hats in the company’s day-to-day operations. Pictured in NYC in 2013

New York Attorney General Letitia James said a group of ‘bad actors illegally raked in profits,’ and ‘affordable housing in New York grew even more scarce, and that is unacceptable’ 

(L-R) Aliana Lohan, Michael Lohan Jr., Lindsay Lohan and Cody Lohan attended a Netflix event  in NYC in 2022

In addition to Lindsay and Michael Jr. exes Michael Lohan, 65, and Dina Lohan, 63, are parents to daughter Aliana Lohan, 31, and Dakota Lohan, 29. 

Michael Jr., a one-time child model/actor and Ithaca College alum, is the managing partner at a Brooklyn-based real estate company called Nineteen Blocks, is father to daughters Isabel and Summer with wife Nina. 

According to a biography on the Nineteen Blocks website, Michael serves as the organization’s managing partner and wears a number of important hats in the company’s day-to-day operations.

‘Michael is responsible for the company’s finance operations, overseeing the acquisitions pipeline as well as the planning and execution of fundraising and investor relations programs,’ the company said.

Among Michael’s responsibilities for his employer include ‘cultivation of HNW and Family Office investor networks, and managing relationships with current and potential institutional investors.’