The jewelry store that accused Lindsay Lohan of stealing a necklace is destroying her life -- just to make a fast buck -- says a good pal of Lindsay's in an exclusive interview with Radar Online.

"I see, and I know the truth, says Nathan Folks, the movie producer who cast Lohan in his upcoming crime drama Escaping the Game.

"It is hard to watch what this jewelry store is putting her through when she is innocent. They feel justified destroying her life, just to make a buck, it's really terrible."

As Radar Online. has previously reported, Lohan, 24, has pleaded not guilty to felony grand theft charges after being accused of stealing a $2,500 necklace from Kamofie & Company, a jewelry store in Venice Beach, California.

Folks insists Lindsay is innocent and says the jewelry store simply wants publicity.

Kamofie & Co has previously sold the surveillance footage of Lohan in the store at the time of the alleged incident.

"The jewelry store had many numbers for Lindsay, they could have reached her and asked for the necklace. Why didn't they? It's a ploy for publicity," Folks told Radar Online.

Credit: Radar Online

The $2,500 necklace that Lindsay Lohan allegedly stole from a jewelry store is officially hitting the auction block ... TMZ has learned.

A rep for the Kamofie and Co. jewelry store announced, "We have decided to sell the diamond necklace through auction, and give the proceeds to charity."

As for the specific charity -- the rep states, “We invite the public to make suggestions as to the most appropriate charity to receive the benefit of the sale’s proceeds."

According to the rep, the auction will not take place until AFTER the criminal case is resolved "by plea bargain, or trial or some other means."

The necklace is currently being held as evidence by the L.A. County District Attorney.

Credit: TMZ

The jewelry store surveillance tape that could be make-or-break in the felony theft case against Lindsay Lohan has been sold, Radar Online is exclusively reporting.

The security video was sold by the store itself! The footage was sold to a company that intended to make the footage public. Entertainment Tonight licensed rights to the video from that company.

This development could complicate the case against Lindsay, and Radar Online has learned that it is causing turmoil in both the prosecution and defense camps.

"Neither side wanted it released," a well-placed source tells us. "Neither side sanctioned this sale."

Lohan is accused of stealing a necklace valued at $2,500 from Kamofie & Co., a jeweler located near her new home in L.A.'s Venice Beach district.

The starlet is due back in court March 10 when she has to tell the judge if she's accepting a plea deal that he's already warned her will come with a jail sentence or try her hand at trial by jury.

Entertainment Tonight will broadcast the surveillance video Monday.

Credit: Radar Online

Well this doesn't look good for Lindsay, a friend of hers has just turned in a piece of stolen jewelry to police in LA, Radar Online has learned.

Radar Online broke the world exclusive story yesterday that police requested a search warrant after seeing both a photograph as well as a video of Lindsay wearing the one-of-a-kind necklace worth $2,500 which someone had stolen from a store in - you guessed it - Venice Beach.

Police tell Radar Online the necklace is now being kept is a safe to use as evidence. It will ultimately be up to the D.A.'s office whether to pursue any charges in the case.

The search warrant was never put into action because the necklace was returned.

UPDATE:  Lindsay Lohan is claiming that this all is a misunderstanding. She says that she just borrowed the necklace and then returned it to her stylist who was late getting back to the jeweler.

Lo Bosworth got a sweet surprise from her man, Scott Hochstadt, for their first anniversary. The hunky lacrosse player surprised Lo with a Platinum Christian Tse necklace, which retails at $3,000. The platinum flower necklace features a peridot center gemstone. Sounds like she has found herself a keeper! 

Credit: In Touch