But when the culprits were found and arrested last week it seemed she was off the hook… until celeb website TMZ did a little research.
18-year-old Nicolas Prugo was one of the people busted for the burglary, and it turns out he and Lilo go way back.
Nick's father is Frank Prugo, the former Vice President of First Look Studios which produced Labour Pains last year, starring… you guessed it, Lindsay Lohan!
Apparently Lindsay and Nick were spotted many times hanging out together on set and they clearly share some common interests because Nick was busted for cocaine possession earlier this year.
Lindsay's people are yet to make a comment about the connection. This could just be a case of the star's druggo friend taking advantage of her of collecting on a dodgy debt, but then again it could be more sinister. If Lindsay was somehow involved in the break-in herself, she could be in some serious trouble since those stolen jewels didn't belong to her and had to be claimed on insurance.
Insurance fraud = jail time.