Lindsay Lohan insists she borrowed the $2,500 necklace from an L.A. boutique, but cops say otherwise. They are about to charge her with felony grand theft, which carries a maximum sentence of three years in prison.

Have you guys been following this crazy Saga of the Stolen Necklace? Lilo was photographed by the paps wearing a necklace last week. (Above.) A local boutique said, hey, that's our necklace, and it was stolen! Just as news broke that police had requested a warrant to search Linday's house, the necklace was returned by her stylist to the LAPD. Now, Lindsay, as serial shoplifter, claims the whole thing was a mix-up by her stylist—that she was simply "borrowing" the necklace.

These are the facts. Now we will see if the "My stylist did it," defense will hold up in a court of law. Could set an important precedent for starlets everywhere.

[Image via X17]