“It’s true, and Larry is completely embarrassed and anguished by all of this,” one source close to the situation tells PEOPLE of the alleged infidelity. “He doesn’t know what to do.”
Another insider tells PEOPLE Shawn, 56, allegedly told Richard Greene that her marriage to Larry, 82, was over. (News of the affair was first reported by National Enquirer, and the New York Post‘s Page Six first identified Greene.)
Though Shawn and Greene allegedly briefly split, the insider says they have since reunited.
Shawn, a former singer and TV host, is Larry’s seventh wife. The two tied the knot in 1997 and share two sons: Chance, 17, and Cannon, 16.
“A lot of new things are happening to us, and we are happy to be together as a family with our children,” Larry said in a statement at the time.
That same year, Shawn was hospitalized in May after being found unconscious at home. A police report at the time stated she was found with bottles of prescription medication and reported it may have been a possible suicide attempt. (In June 2008, Shawn sought treatment for addiction to painkillers, which her father said was in part due to her longtime struggle with migraines.)
“Our marriage is still together and I am staying very close to our children, who we love immensely,” Larry said in a statement after the May 2010 incident. “We shall go through this difficult time intact as a family.”
Reps for Shawn did not immediately respond to PEOPLE’s request for comment.