Suspect arrested in California Picasso theft

An employee poses for photographers in front of Pablo Picasso's ''Tete de femme'' painting at Christie's auction house in London January 20, 2010.

SAN FRANCISCO (Reuters) - Police have recovered a Picasso drawing stolen from a San Francisco art gallery and arrested the man suspected of taking the valuable sketch, authorities said on Thursday.

Mark Lugo, 30, was taken into custody on Wednesday at a hotel in Napa, California, where the stolen artwork from the Weinstein Gallery also was found, the San Francisco police department said in a statement.

Earlier this week, a smartly dressed thief in dark glasses walked into the gallery and before anyone noticed snatched the 1965 Picasso pencil drawing titled "Tete de Femme" -- French for "head of a woman" -- then fled in a taxi, according to the gallery.

The sketch measures about 11 inches by 8 inches and is worth $275,000, police said.

Lugo faces several charges, including grand theft, possession of stolen property and possession of a controlled substance. His bail was set at $5 million, police said.

The arrest came after police impounded the getaway taxi looking for evidence, including possible clues from a surveillance camera installed in the vehicle.

(Reporting by Dan Levine; Editing by Steve Gorman and Cynthia Johnston)