Los Angeles art and antiques dealer Tatiana Khan, 70, may serve prison time for selling a fake Picasso for $2 million. She agreed to plead guilty to federal fraud charges, authorities said Tuesday.

The owner of Chateau Allegré gallery wove an elaborate web of lies regarding the provenace of the work. In actuality, Khan paid an art restorer $1,000 to create a reproduction of a drawing by Pablo Picasso -- a 1902 pastel “La Femme Au Chapeau Bleu” or “The Woman in the Blue Hat.”