'Liz & Dick' Lawsuit Allegations of Epic Scam

2/21/2013 6:02 PM PST

Lawsuit Claims Investor Scammed Over Lindsay Lohan's 'Liz & Dick'


A producer who is Lindsay Lohan adjacent is accused of scamming an investor out of $110,000 -- the amount the producer claimed was necessary to insure LiLo on "Liz & Dick."

Michael Braun claims in 2012 ... he was approached by a Hollywood producer named Rick Schwartz, who said he was trying to drum up money for the upcoming "Liz & Dick" production.  Braun claims in his lawsuit ... Schwartz told him he needed $110,000 to get an insurance policy for the high-risk actress.

After some discussion, Braun claims he anted up the cash. 

Fast forward to completion of the film, when Braun asked Schwartz to repay the loan.  Braun says in the lawsuit it quickly became obvious... Schwartz had scammed him -- that Schwartz had NOTHING to do with the film and he was just out to fleece an unsuspecting rich guy.  

Braun says after confronting Schwartz, he got back a measly $36,313.67.  Now he wants the rest, plus punitive damages for alleged fraud.

But we did some checking and it turns out Schwartz does have a Lindsay connection.  Although his credits do not include "Liz & Dick," he did work with Lindsay as a producer on "Machete."  He was also a producer on Lindsay's non-Emmy winning movie, "Labor Pains."