Lohan, who may be the target of legal action himself in the coming weeks, told the site that Gosselin "did deals with [him]."
"I was working on a deal with him for a Nutrisystem endorsement and a book deal. He got paid a lot of money for different promotions, clubs, magazines, and by a TV network," Michael claimed. "At times he said what we were doing was OK; at times he said it was a problem."
Lohan also alleged that his former friend was paid in cash for many appearances. The pair were formerly planning a reality show called the "Divorced Dad's Club," which fell apart in recent weeks.
Gosselin is being sued for breach of contract by TLC. The status of his show with the network, "Jon and Kate Plus 8" (which the cable channel announced in September was set to be renamed "Kate Plus 8"), remains up in the air.
As previously reported on AccessHollywood.com, a judge granted motions for the network's lawyers to depose Lohan, along with Hailey Glassman and members of Gosselin's staff.
Gosselin's lawyer previously told Access the allegations were a "baseless action."
As for Lohan's own possible legal drama, daughter Lindsay's lawyer, Shawn Chapman Holley, previously told Access that reports that the young star would file a cease and desist or restraining order against her outspoken father were "not true." However, mom Dina Lohan told Access Hollywood's Billy Bush on Monday that her other daughter, Ali, would be seeking a restraining order against her father.
Related Content from AccessHollywood.com:
PLAY IT NOW: Inside The Lindsay Lohan Tapes Controversy, Part I
PLAY IT NOW: Inside The Lindsay Lohan Tapes Controversy, Part II