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Lindsay Lohan Suspect in Rolex Theft

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Apr. 23 2010, Published 4:35 a.m. ET

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Lindsay Lohan can't seem to catch a break these days as her downward spiral continues. On top of battling with her father, the socialite is now embroiled in scandal surrounding the theft of a $35,000 Rolex.  Law enforcement officials told TMZ Lindsay has been named a suspect in the watch heist.

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The Rolex reportedly belongs to a former friend of Lindsay who accidentally left it at Lilo's house earlier this year and never got it back.

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According to TMZ source, police have photographic evidence which could prove Lindsay knows exactly where the Rolex went.

Cops allegedly went to Lindsay's house on Wednesday to question the actress about the Rolex, but she denied any involvement in the crime.

So far, no arrests have been made in the case — but it's another major issue for Lohan, who has had no shortage of drama.

Lindsay's lawyer, Shawn Chapman Holley, told TMZ "The allegations are completely untrue."

Law enforcement officials all stopped by Lindsay's house yesterday after her father Michael Lohan contacted them, concerned about the , well being of his 16-year-old daughter, Ali Lohan.

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OK! GALLERY: LINDSAY LOHAN CAN'T HANDLE THE HOLLYWOOD HOOPLA

Ali has been staying with Lindsay in her L.A. apartment.

Michael told TMZ that he would drop his request to have Lindsay placed under a conservatorship if she would sit down and talk with him and agree to get help.

Lindsay  has been continuing her Twitter rant, calling her father insane, a pathological liar and an ex-con.

As per her Tweets, it doesn't look like Lilo will be sitting down and listening to Daddy's demands anytime soon.

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