Report: Lindsay Lohan To Be Charged With Felony For Jewelry Theft

Lindsay Lohan will be charged with felony grand theft of a $2,500 necklace she is accused of stealing from a Venice, CA jewelry store, according to a report.

Although Lindsay has maintained that took the necklace on loan (as many retailers allow celebrities to do) and returned it as soon as she was supposed to, TMZ reports that charges will be filed as soon as Monday.

If convicted, Lindsay will face up to three years in jail on this charge alone, and possibly even more since this would be a violation of the probation she's still on for her DUI case.

A source told X17online exclusively:

"She didn't STEAL the necklace, she borrowed it. It was understood that she was allowed to wear the necklace for a certain period of time and return it -- that was always the deal. She didn't steal anything and she returned it immediately when they asked for it back."

Lindsay has been meeting with attorneys, including Lisa Bloom, to discuss her options, but it's believed that if it goes to court, she'll argue that this is all just a misunderstanding and that the necklace was borrowed, not stolen.

Check out X17online's exclusive photos of Lindsay wearing the necklace in question below!