Lindsay Lohan’s younger brother, Michael Lohan Jr., is being sued by New York Attorney General Letitia James. The lawsuit claims he illegally removed rent protections from over 150 apartments in Brooklyn and Queens. He is accused of working with several property owners connected to Peak Capital Advisors to push out existing tenants and turn their homes into expensive luxury apartments.
According to the NY Post, the group allegedly bought 31 buildings in popular neighborhoods like Greenpoint and Williamsburg starting in 2019. Their plan was to convert 159 rent-protected apartments into regular market-rate units. This allowed them to charge much higher rents, sometimes up to $6,500 per month.
The lawsuit says they targeted young professionals who were willing to pay these high prices, completely ignoring the laws that protect affordable housing. Peak Capital reportedly looked for buildings in neighborhoods that were becoming more expensive, such as Sunnyside, Astoria, and Long Island City. They believed these properties had “significant upside potential,” meaning they could make a lot more money from them.
The legal exemption they allegedly misused
The real estate company tried to use a special exemption in state housing law. This exemption lets building owners convert rent-protected apartments to market-rate if the building is in very bad condition and needs major repairs to be livable. But the lawsuit claims Peak only did renovations to increase their profits, not because the buildings actually needed them.
Records show the buildings were actually in average or good condition when Peak bought them. This means they didn’t need the extensive work required by law to remove rent protections.
Because they didn’t meet this legal requirement, the state argues the entire deregulation was illegal from the start. Michael Lohan Jr.’s sister Lindsay has faced her own controversies over the years, though her issues were very different from this real estate scandal.
Michael Lohan Jr. is listed in court documents as a principal and head of investor relations for Peak. The lawsuit claims he personally received illegal profits and was entitled to collect rent from these properties.
The group also allegedly tried to hide what they were doing by changing apartment numbers within the buildings after renovations were finished. This made it harder for tenants and government officials to track whether the rent being charged was legal.
The lawsuit, filed by the Attorney General’s Office and the state’s Homes and Community Renewal Commission, demands that all overcharged rent be returned to tenants, plus additional damages. Attorney General Letitia James said New York City is already facing a serious affordable housing crisis.
She stated that Peak and its operators chose to make money at New Yorkers’ expense and warned that her office will take strong action against developers and landlords who try to cheat housing laws. The Lohan family has been in the spotlight for years, with Lindsay herself leaving Hollywood for a quieter life away from the industry’s pressures.
Published: Dec 11, 2025 02:36 pm