Update 7/8/11: Police have arrested Mark Lugo, 30, of New Jersey on charges of burglary, grand theft, possession of stolen property and possession of narcotics. Tips and video from a nearby restaurant and a taxicab led police to find Lugo in Napa, Calif. where the missing Picasso sketch was found in his hotel room, according to ABC News.

---Lefty O'Doul's restaurant in San Francisco says it has surveillance video of a man who ripped a Picasso drawing off the wall of a nearby gallery.

The restaurant is close to the Weinstein Gallery, where the thief snatched the 1965 pencil-on-paper drawing on Tuesday morning then got into a waiting taxicab, according to the gallery and police.

Picasso's "Tete de Femme" measures about 8 inches by 11 inches, and is worth more than $200,000, according to the gallery.

Witnesses say the thief appeared to be a man in his 30s who wore a navy jacket, big sunglasses, and loafers with no socks.