The actress is currently being investigated in relation to a recent theft from a home belonging to her friend Sam Magid.
Although Magid apparently later changed his story and claimed that nothing was stolen from the house, police officers are still continuing their investigation.
Magid reportedly told police Andrew Knight's version of events - that he and another male friend had been handed a bag by Lohan on the night of the alleged theft, containing two to three pieces of stolen items wrapped in her T-shirt, reports TMZ. The men later returned the items to Magid, while others remained missing.
Magid added that Lohan had later told him that she had hidden some of the items around the house as she was worried that they would be stolen. She also allegedly confessed that she was on insomnia medicine Ambien while she hid the items.
Andrew has denied any involvement in the incident, with police officers still wanting to talk to Lohan.
The watches and sunglasses in question are thought to be worth $100,000 (£63,404).
Police are also reportedly wishing to talk to Lohan about her car crash incident in June 2012.