Prosecutors have decided to file charges against Lindsay Lohan following a police probe into whether the troubled actress stole a $2,500 necklace from a jewelry store, according to TMZ.com.
The Los Angeles County District Attorney's Office denied the charges, which TMZ said could be filed as early as Monday.
"I don't know where TMZ is getting their information," said Sandi Gibbons, spokeswoman for the Los Angeles County District Attorney's Office. "We have our investigation under review and a filing decision has not been made."
The felony grand theft charges mean Lohan, who is on probation in a separate drunken driving case, could face a possible jail sentence of six months for violating her probation.
The necklace was taken on January 22 from a boutique in the beachside Los Angeles neighborhood of Venice, the Los Angeles Police Department said in a statement.
Surveillance video from the jewelry store shows Lohan wearing the necklace, according to media reports. Lohan has insisted that she took the jewelry on loan.
On Tuesday detectives obtained a search warrant for Lohan's Venice home, but before detectives arrived the necklace was returned to a police station.
An attorney for Lohan did not return calls for comment. If convicted, Lohan faces a maximum of three years in state prison, reported TMZ.
Lohan recently completed a stay at the Betty Ford Center, in her fifth stint in rehab in three years, as a result of failing a drug test while on probation for a 2007 drunken driving and drug conviction.
Lohan in December had a skirmish with a Betty Ford worker that resulted in a police investigation, but prosecutors have not filed charges in the case.
The 24 year-old former child star of movies such as "The Parent Trap" has seen her personal life go off-track since 2007 when was arrested twice for driving and drug offenses. That year she was sentenced to one day in jail and placed on probation. In 2010, she twice spent time behind bars for violating probation.
Her career has fallen on hard times, too. Most recently, she lost a starring role in an upcoming movie about 1970s porn star Linda Lovelace due to her personal problems.