Lindsay Lohan Declines Plea Deal; Judge Warns 'This Case Involves Jail Time'

Prosecutor Danette Meyers reportedly presented Lohan's legal team with a plea bargain that included significant jail time for her probation violation. The deal also reportedly offers three years felony probation for the grand theft charge.

As he did during the last hearing, Judge Schwartz took a few minutes to publicly scold the actress and offer his advice for what Lohan should do. He suggested that she have additional psychological screenings and therapy. He also said she needs a 12-step sponsor that is not a member of her family.

"You need a good sponsor who will assist you to help you stay away from substance abuse issues, alcohol issues," he said.

► WATCH VIDEO: Footage From Inside Court, Via RadarOnline.com

The star's mother and father were in court to offer their support. A RadarOnline reporter spotted Lohan giving her father, Michael, a kiss goodbye. After the hearing, Michael Lohan addressed the media in a long and scathing exchange with reporters. He accused the jewelry store of tricking Lohan into taking the necklace in order to promote the store. He alleged that when they felt they had not received enough promotion, they sought police action.

He also singled out his ex-wife, Dina, as not doing enough to help create a positive environment for Lindsay's recovery.

The next hearing has been set for March 10 at 8:30 AM.

If she does not plead guilty or no contest to the felony charge at that time, the case would then transfer to Judge Stephanie Sautner of the Airport Courthouse, who would be tasked with holding the preliminary hearing in the grand theft case as well as consider the star's probation violation.

Lohan was officially charged during a hearing on Feb. 9. After pleading not guilty, Judge Schwartz lanced into the actress for not taking the charges seriously. "If you violate the law again, I will remand you with no bail," he told her. "Things will be different."

If this goes to trial and she is convicted, Lohan could be sent to a California state prison with a maximum sentence of three years behind bars.

The actress, who remains on probation in a 2007 drunken driving case, is accused of taking a necklace from Kamofie & Co. of Venice Beach, Calif., on Jan. 22, roughly three weeks after the actress was released from three months of court-ordered rehab at the Betty Ford Center.

A police report was filed the day of the incident, and authorities reportedly waited until she was photographed wearing the necklace until deciding to pursue charges. A friend of the actress turned the necklace in to the Pacific Division of the LAPD on Feb. 2.

Lohan's lawyer, Holley, has denied the charges, and the actress apparently claimed that the necklace was loaned to her -- and that, unbeknownst to LiLo, her stylist simply forgot to return it in time. The star's dad, Michael Lohan, told PopEater at the time that the entire incident was as a "ridiculous" misunderstanding.

Meanwhile, rumors of Lohan's recent late-night partying probably haven't helped her case, and the actress took to Twitter to try to clear her name.

According to PEOPLE, Lohan was spotted leaving Hollywood's Roosevelt Hotel last week with Samantha Ronson.

"I was just at roosevelt to meet Samantha and say happy birthday to a friend," Lohan tweeted. "i take my sobriety seriously. please dont believe this accusations. i know the rules and i wouldnt risk probation."

On Saturday night she was out late again, catching a show by Ferras at Hollywood's Hotel Cafe.

"Went to see my friend @ohferras perform and was talking to a future costar -- just to be bombarded by paparazzi," she wrote. "So much for being normal -- im now winded and headed home."

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