How Lindsay Lohan Allegedly Stole The Necklace

Lindsay Lohan pled not guilty to felony grand theft on Wednesday, after she was accused of stealing a $2,500 necklace from an LA jewelry store.

TMZ has obtained a police report stating that Lindsay walked out of the store wearing the necklace after trying on and removing several other pieces. Lindsay reportedly offered $3,000 cash for a $3,600 ring, which the owner refused, then said she would come back the next day. She reportedly walked out wearing the necklace. The owner soon found it missing and figured Lindsay had taken it by accident and would return with it. She never did.

Everything was caught on on surveillance video, but Lindsay's case may rest on inconsistencies in statements from the store's owner.

"The police report indicates that when the jewelry store owner first reported the theft, she indicated that the surveillance video showed Lindsay putting the necklace in her purse," a source with knowledge of the file told

The source told Radar that the owner didn't hand over the video when she first reported the alleged theft, and changed her story to what the video reportedly shows - Lindsay leaving the store with the necklace on, not in her purse.

Lindsay has previously called the allegations "bullsh*t," claiming the necklace was on loan to her and her stylist should have returned it.

Lindsay wore a white mini-dress to court and showed lots of leg - see photos here. She was released on $40,000 bail.

She is is still on probation for a 2007 drunken driving case and could face up to three years in jail if convicted.

Read more from the police report at TMZ.

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