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.

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

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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.

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

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

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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.

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

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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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