A source told gossip website RadarOnline.com: "Lindsay became very good friends with Elizabeth Taylor's long-time nurse while shooting 'Liz & Dick.'
"Elizabeth had given the nurse an expensive bracelet that was very meaningful to her and the nurse absolutely cherished it. Lindsay immediately fell in love with the bracelet the minute she saw it and was very vocal about how much she admired it. A short time later, the bracelet disappeared from the nurse's house ... on the very same day Lindsay had been to visit.
"The nurse initially gave Lindsay the benefit of the doubt, thinking that she had just accidentally forgotten to take the bracelet off after trying it on. However, that theory was soon shot down after she called Lindsay and she swore she did not take the bracelet and categorically denied having it in her possession.
"The nurse knew that was a blatant lie as the bracelet disappeared after Lindsay was at the house and she knew that it had to have been Lindsay who took it. In the end, it took over a week to get the bracelet back from Lindsay and it was only returned after the nurse threatened to call the cops. One of Lindsay's people eventually returned the bracelet to the nurse, who was extremely upset about what had transpired."
The 26-year-old troubled starlet has been on probation since being found guilty of stealing a necklace in July 2011, for which she was sentenced to 120 days in prison and 480 hours of community service.