Lindsay Lohan's uncle PAUL SULLIVAN has been arrested (21JUN05) for allegedly misusing a government loan.

Sullivan's company the ROPA GROUP acts as exclusive agent for the HYUNDAI MOTOR COMPANY to the UNITED NATIONS, but vital trade was lost after the September 11th (01) terrorist attacks - leading the business mogul to apply for a $1.5 million (GBP800,000) loan in an attempt to revive the company and its subsidiaries.

The Ropa Group was granted a loan of $647,000 (GBP350,000) on the understanding that $98,000 (GBP58,000) would be used for working capital and $548,300 (GBP300,000) for outstanding debts and liabilities.

However, the complaint alleges debtors were never paid, and that their endorsements on the cheques had been faked.

Sullivan, who was tried at US District Court in Central Islip, New York, was released on a $250,000 (GBP140,000) bond.

Sullivan denied the charges, insisting, "Everything is fine. It's a misunderstanding."

23/06/2005 09:26