Lindsay Lohan's father Michael believes the actress was set-up.

The 26-year-old star was taken to jail Wednesday morning after being accused of hitting Manhattan chef Jose Rodriguez with her car and leaving the scene.

The victim in the accident told the New York Daily News that Lindsay "smelled like alcohol real bad" at the time of the incident.

Apparently Lindsay "clipped" Jose as she slowly entered the parking lot between the Maritime and Dream hotels.

Michael thinks there is something fishy about this story.

"Wouldn't somebody dodge a car if they were coming into a parking lot at 1 or 2 miles an hour?" Michael told Extra.

"There's a lot of holes in his story and it's gonna come out in the wash. How can she reek of alcohol when he wasn't even near her? He was outside the car and she was inside the car with the window up. I don't know where he's getting this from."

Lindsay has been arrested several times before and earlier this year was named a person of interest in a jewellery theft. She was later ruled out of the case.

Fuzzy surveillance footage of the incident has been released.