Lindsay Lohan pleaded not guilty on Wednesday to a charge of felony grand theft for allegedly stealing a $2,500 necklace from a jewelry store.
If convicted, she could be sent to state prison for up to three years, which would mark her fourth stint behind bars.
The 24-year-old actress appeared at a Los Angeles court in a tight, white and long-sleeved mini-dress and sunglasses. She was taken into custody after a judge set bail at $40,000.
He said it appeared Lohan had violated her probation in a 2007 drunken driving case and warned that he would have her arrested and held if she violated the law while free on bail.
"A felony is a different situation," the judge said. "You need to follow the laws just like everybody else. Look around this room. Everyone in this room has to follow the law. You're no different than anyone else so please don't push your luck."
Lohan is due back in court on February 23. She could be tossed back in jail if a judge determines Lohan violated its terms, which required her to obey all laws and undergo random drug and alcohol testing. Her attorney, Shawn Chapman Holley, said recent tests have come back clean.
Lohan is accused of stealing the necklace from Kamofie and Co., a store located in the Venice area of Los Angeles on January 22, three weeks after she was released from court-ordered rehab.
The Los Angeles Police Department issued a search warrant on February 2 for Lohan's home to try to find the necklace. The item was returned to police before it was served.Lohan had relocated to the Venice area after she underwent treatment at the Betty Ford Center. Her rehab stint was part of a punishment handed down for violating the terms of her probation stemming from her drunk driving case.
Lohan pleaded guilty in 2007 to being under the influence of cocaine and no contest to driving with a blood-alcohol level above 0.08 percent and reckless driving.
Lohan's three stints behind bars have each lasted 84 minutes, 14 days and 15 hours - the last of which occurred in September after she failed a drug test and wrote about it on her Twitter page.
The stolen necklace case is the second active police investigation that could send Lohan to jail if a judge determines she has violated her probation.
The actress is also currently under investigation from Prosecutors in Riverside County who are considering pressing battery charges against Lohan over a December altercation the actress had with a worker at the Betty Ford Center.