Lindsay Lohan to Be Arraigned for Grand Theft

Sept. 24: Lindsay Lohan arrives at a court hearing in Los Angeles after failing a court-mandated drug test. She will now appear in a biopic about John Gotti.

Lindsay Lohan will be charged with felony grand theft of a $2,500 necklace reported stolen from a jewelry store last month, said prosecutors.

The single count of will be filed in a Los Angeles court and Lohan will be arraigned that afternoon.

If convicted, she faces three years in prison. But Los Angeles attorney Steve Cron told Pop Tarts earlier this week that it is unlikely she would serve the full term.

"Judge Fox [who has handled most of her probation violations] could give her six months for violating probation in Beverly Hills and another judge who hears the case on grand theft could decide to send her for more time in county jail or he could send her to state prison" Cron said.

He went on to say a more likely scenario would be an extended period of time in a county jail.

Lohan's camp has been maintaining her innocence.

Los Angeles police said that Lohan was under investigation for taking a necklace from a Venice store later identified as Kamofie and Co. Detectives obtained a search warrant to try to retrieve the item from Lohan's home, but it was turned into a police station before any search was made.

Police said they had no update on the case Tuesday and did not say whether the actress had made arrangements to turn herself in at court or at a police station.

“We vehemently deny these allegations and, if charges are filed, we will fight them in court, not in the press," Lohan's attorney Shawn Chapman Holley said in a statement.

Sources close to the troubled star told us she still isn't upset by the hoopla and is used to being "taken advantage of" by people and companies for the sake of PR.

"This whole story is crazy,” said an insider, who said that amount is “tip money” to the star. “If she wanted the necklace that badly she would have bought it.”

Deidre Behar and the Associated Press  contributed to this report.