Michael Lohan Furious With Actress Over New Paparazzi Footage

Michael Lohan is furious with his actress daughter after an undercover paparazzi team caught her in what appears to be a street drug deal.

X17.com footage of Lohan and friends hanging out near her home in Venice, California was posted online on Wednesday morning (10Aug11).

The 25-year-old actress scribbled notes in a book and chain-smoked cigarettes as apal inspected a small plastic bag handed to him by a suspicious bystander.

The actress was then seen handing over cash to the mystery man.

Her father Michael Lohan isn't waiting for an explanation and has blasted his daughter for refusing to give up her seemingly shady friends.

He tells X17.com, "I can't believe that Lindsay still surrounds herself with these shady people and puts herself in this position.

"These guys look like a bunch of thugs on the streets. Everyone around her looks so shady and dark.

"How does she ever expect her life to move in the right direction? I can't believe her! Lindsay has to start to learn to respect herself a lot more, as well as her family and the people in her life that truly care".

The actress recently completed a period of house arrest after she was found guilty of violating her probation on a Dui charge.

Lohan has been battling alcohol and substance abuse issues for the pasttwo years and has been in and out of jail and rehab.