New Witness Comes Forward For Lindsay Lohan

In a new development in her felony theft case, Lindsay Lohan has an ace up her designer sleeve -- a witness who has come forward that will blow the prosecution's claims out of the water, her father Michael Lohan told Radar Online in an exclusive new interview.

Accused of stealing a necklace the store claims is valued at $2,500, Lindsay is facing felony charges, but a new witness will offer solid evidence that may keep the 24-year-old Mean Girls star out of jail.

"A man contacted Lindsay's camp and told them he went into the jewelry store way before Lindsay did and was interested in buying the necklace," Michael revealed to Radar Online. And, the bombshell?

"They told him it was $800."

According to Michael, the man heard about Lindsay's predicament and came forward to tell his side of the story about the necklace, and he has volunteered to testify for Lindsay if there is a trial.

Elated at the news of the new witness and confident that this will be a blow to the prosecution of his daughter, Michael explained to Radar Online the effect he expects the man's testimony to have on the case.

"This witness will completely exonerate Lindsay and prove that the necklace isn't worth $2,500, and prove that she shouldn't have been charged with a felony."

Credit: Radar Online

Lindsay Could Escape Jail – Even If Convicted

Lindsay Lohan has a reasonable chance of avoiding jail and even a conviction in her felony grand theft case, even though she's been accused of stealing several times in the past, legal experts tell PEOPLE.

"This is far from a slam-dunk case," says L.A. criminal defense attorney Steve Sitkoff of the allegation that the actress, 24, stole a $2,500 necklace.

"All her attorney has to do is convince one juror it was an innocent misunderstanding and she could walk, unless they decide to retry her again."

Adds L.A. criminal defense attorney Harland Braun: "Even if she's convicted, I doubt she'll get state prison time because she's not a physical threat to the public. Prison is generally regarded as a place for hardened criminals, not someone who clearly has mental issues. She has a defensible case."

Experts also agree that her past theft allegations could be used against her in court depending on whether the judge finds the accusations relevant.

Here are among the possible resolutions to the actress's case:

• Lohan could reach a plea deal without going to trial, and be sentenced to anywhere from six months to a year in county jail for the alleged theft as well as for violating her probation. "In this case, the court could figure out a way to make sure she does substantial time and forbid her from early release due to overcrowding," Sitkoff says.

• She could also strike a deal in which she only gets felony probation with no jail time and if she stays out of trouble for three years, the judge could reduce the charge to a misdemeanor. Lohan's attorney Shawn Chapman Holley stated on Thursday she was seeking this as a possible outcome.

• The actress wins at trial by convincing jurors she didn't intend to steal. However, Lohan could still face a probation violation and return to jail without a conviction in the theft case.

• Lohan could go to trial and lose, and could be subject to harsher punishment if the judge decides she was being deceitful to the court. "But if she loses at trial, I can't see her getting more than eight months in state prison," Braun says.

Credit: Ken Lee for PEOPLE

Jeweler's Inconsistency Will Help Lindsay Lohan

The police report detailing how Lindsay Lohan allegedly stole a $2,500 necklace from an L.A. jewelry store shows two puzzling inconsistencies in the jeweler's story -- inconsistencies that could help Lindsay beat the rap.

According to the report, obtained by TMZ, the jeweler first told cops Lindsay had been in the store three times before the alleged theft -- looking at the necklace in question. The next day, the jeweler changed her story and said it was actually a ring Lindsay had been eyeing on previous visits and never looked at the necklace.

And there's another inconsistency. According to the report, on January 23, the owner told cops, "The surveillance video revealed that as Kaman [owner] was talking to Lindsay's male friend, Lohan reached up to her neck area with both hands, removed the store necklace, and placed it inside her black Chanel bag."

But the next day, the owner changed her story, saying Lindsay walked out of her store with the necklace around her neck. The reason for the inconsistency -- the owner claims she reviewed the video on a different monitor the second time and saw it differently.

The jewelry store owner's credibility is crucial because Lindsay claims the owner loaned the necklace to her.

Credit: TMZ

Lindsay To Be Charged with Felony Grand Theft

Lindsay Lohan will be charged today with one felony count of grand theft for allegedly stealing a $2,500 necklace from a Venice, Calif., jewelry store on Jan. 22, the Los Angeles District Attorney has announced.

She is required to show up in person for an arraignment at an L.A. courthouse Wednesday afternoon. If convicted, Lohan, 24, potentially faces several years in state prison.

The actress's attorney Shawn Chapman Holley has denied Lohan committed any crime and plans to defend her in court.

A source close to the actress insisted the necklace was borrowed, not stolen. The source recently told PEOPLE, "Lindsay's used to getting gifted items that are worth way more than that. And why would she steal a necklace? She has tons of jewelry and doesn't need any more."

"The prosecutors have an uphill battle ahead because they must prove criminal intent, that Lindsay knew she wasn't authorized to remove the necklace from the store," says L.A. criminal defense attorney Stanley L. Friedman, who's not involved with the case. "Her attorney will almost certainly argue this was all just a misunderstanding."

"If she's convicted, the fact that Lindsay's on probation makes it more likely that she's headed for state prison versus jail," Friedman adds. "And in prison, they never release inmates early for overcrowding, only for good behavior."

LAPD detectives obtained a search warrant last week to search Lohan's Venice home, but before they descended on the actress, the necklace was returned to the police station, according to an LAPD statement.

Lohan is also currently under investigation by Riverside County prosecutors for allegedly battering a Betty Ford employee.

In her DUI case alone, L.A. Superior Court Judge Elden Fox previously warned Lohan on Oct. 22 that any more slip-ups would be met with six months in jail.

Credit: Ken Lee for PEOPLE