Lindsay Lohan's uncle has been sentenced to one year and one day in federal prison for defrauding the U.S. government of terrorist relief funds.

Paul Sullivan was jailed on Thursday after pleading guilty to one count of mail fraud in April 2006 after pocketing $132,000 of a $650,000 loan from the Small Business Administration (SBA). The 50-year-old brother of Lohan's mother Dina claimed his car company lost business after terrorist attacks on New York's World Trade Center on September 11th 2001.

Sullivan reportedly broke down in tears in the courtroom when the Long Island, New York judge delivered his sentencing.

He has also been ordered to pay back the $650,000 SBA loan.

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(This news article provided by World Entertainment News Network)