Lindsay Lohan was drunk, on vodka bender when she allegedly punched woman in club, reports say

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Lohan arrested in NYC

Lindsay Lohan is accused of punching a woman in the face in a NYC club

NEW YORK – Lindsay Lohan is in a downward spiral fueled by serious boozing spurred by legal troubles, money woes, and the panning of her performance in Lifetime's "Liz and Dick," according to multiple reports.

Sources tell TMZ the troubled actress sometimes drinks up to two liters of vodka a day. The insiders say Lohan starts drinking when she gets up, and then never stops. They tell TMZ that's what happened on Wednesday morning, culminating with the inebriated star allegedly punching a woman in a New York City club at 4 in the morning on Thursday.

The New York Post reports that Lohan was so drunk she couldn't remember where she had put a handbag that contained $10,000 in cash, and ended up blaming Tiffany Mitchell, a Florida psychic, who she then allegedly cold-cocked.

FOX411 got details on the events that went down inside Avenue night club in the early hours of Thursday morning that led to Lohan being led away in handcuffs screaming.

According to the police report filed on the incident obtained by FOX411, a 911 call was placed at 3:45 a.m. from the husband of a woman who said she had been assaulted by another female patron.

According to the police report, Mitchell, her husband Wayne Stevens, and two others were at their own table in the club while Lohan was in an adjoining section with another group.

A few minutes prior to 3:45 a.m., a scuffle broke out in the club, unrelated to Lohan or Mitchell. In Mitchell's statement to police, she says she was trying to see what was happening then moved away from the other fight when she "backed up" into someone.

"Someone pushed me from behind" reads the statement from Mitchell.

The club went back to normal for a few minutes before Mitchell says in the report she was "punched in the left side of the face" by a woman, whom she did not know at the time was Lohan.

"She didn't recognize her right away," says an NYPD source."She was hit."

Mitchell was escorted out of the club by staff as her husband called 911, during which time Lohan slipped out a side door of the club, according to the report.

While law enforcement interviewed Mitchell, another squad car intercepted an SUV waiting outside the club. Lohan was in the passenger seat, and when police brought Mitchell over to the SUV's door, she said: "That's the girl who hit me."

Lohan was taken to the 10th precinct in the Chelsea neighborhood of New York City and charged with third degree misdemeanor assault. A source said she did not speak a word at the station house, and simply asked for her lawyer.

An eyewitness at the club said the scene inside "was a madhouse" and "the girl [Mitchell] was in shock." The eyewitness did not see the alleged attack take place.

But Mitchell's husband, speaking to reporters assembled outside their New York apartment building Thursday afternoon, gave his side of what happened inside the nightclub.

"The bouncer was having a fight with somebody else and I grabbed my wife next to me," Stevens said. "My friend had their wife, and there were girls behind us. After it was over she [Lohan] went over and pushed  my wife hard. I don't even know why she pushed her... About five minutes later she comes around and told my wife 'I need space' or something like that. And then she just punched her."

Stevens said the bouncers did not want to help him so "I went and called the police myself. A bouncer said they're not throwing her out because she is Lindsay Lohan. I said well my wife got punched by Lindsay Lohan, I don't care. I couldn't  understand why the bouncers weren't throwing her out after she punched my wife right in front of them."

A spokesperson for Avenue night club confirmed to FOX411 that Lohan was there and said the bar is cooperating with officials in their investigation.

A call to Lohan's rep was not returned. Lohan is due back in court Jan. 7 to respond to the assault charge.

Marianne Garvey and Brittany Talarico contributed to this report.