Lindsay Lohan will be charged Wednesday with one felony count of grand theft for allegedly stealing a $2,500 necklace from a jewelry store in Venice, California.

Prosecutors announced that the 24-year-old actress is ordered to show up for arraignment at 1:30 p.m. that day at Airport Superior Court, Department 144 in Los Angeles. If convicted of the crime, Lohan could face time behind bars at the California state prison.

Lohan allegedly walked out of the jewelry store with the necklace on January 22. The owner reported the theft to the Los Angeles Police Department, who later investigated the accusation and presented evidence to the District Attorney's office last week.

On Saturday, Lohan's lawyer, Shawn Chapman Holley, denied claims that her client had stolen the gold necklace in an e-mail to ABCNews.com. "We vehemently deny these allegations and, if charges are filed, we will fight them in court, not in the press," she wrote.

Despite the allegations, sources close to the starlet insist that the piece of jewelry was borrowed, telling People magazine, "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."