SAN FRANCISCO -- A police raid on the New Jersey apartment of the man accused of stealing a Pablo Picasso drawing in San Francisco turned up $500,000 in stolen artwork, including a Picasso etching that had been taken last month from a Manhattan gallery, investigators said Thursday.

Police say the art was found in the Hoboken apartment of Mark Lugo, 30, who is being held on $5 million bail in San Francisco in connection with the July 5 theft of "Tête de Femme (Head of a Woman)," a 1965 pencil drawing by Picasso.

Police found 11 pieces of stolen artwork in Lugo's apartment, taken from five galleries and two hotels in Manhattan in a spree that lasted from June 6 to July 1, said New York City police Lt. John Grimpel.

The pieces were taken in a fashion similar to the theft of the Picasso in San Francisco, in which Lugo allegedly walked out of the Weinstein Gallery with the sketch in broad daylight, Grimpel said.

"He just walks in and takes them," the lieutenant said.

1933 Picasso

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Among the pieces found in Lugo's apartment in the Tuesday night raid was a $350,000 Picasso etching that was stolen from the William Bennett Gallery in SoHo on June 27, Grimpel said.

Gallery owner William Ledford identified it as a 1933 piece, "Sculpteur et Deux Têtes (Sculptor and Two Heads)," and said it was the first piece ever stolen from his business.

Wanted fine art

"It seems like he just wanted some nice art and didn't want to pay for it," Ledford said.

New York officers raided Lugo's apartment along with Hoboken police after San Francisco detectives tipped them that the Picasso might be there, Grimpel said.

Hoboken Detective Sgt. Edwin Pantoja said the Picasso was hung in the living room of Lugo's apartment in a prominent spot.

"The detective (from New York) recognized it immediately upon walking in," Pantoja said. "As soon as we walked in, he said, 'There it is.' "

Nice place

Lugo, a one-time sommelier in upscale New York restaurants, lived in a pricier section of Hoboken, Pantoja said. His apartment was a one-bedroom, second-floor walkup full of books and wine.

"It was just a normal apartment, unless you had known what was in it," Pantoja said. "If you had gone in there like 20 times, you would have stolen his PS3 and left the art alone."

Pantoja said it didn't look like the stolen art was meant to be sold, but rather to be displayed.

Police revealed the find the same day that Lugo's attorney said he was looking into the possibility that his client may have "psychiatric issues," in light of additional revelations that Lugo is facing charges of stealing expensive wine.

Lugo was charged with stealing three bottles of wine worth about $6,000 from Gary's Wine and Marketplace in Wayne, N.J., in April. He faces charges known as theft as a disorderly person, said Wayne Municipal Court Administrator Lori Ellicott.

Missed court date

Lugo missed his June 9 court date, and because he was in jail in San Francisco, he missed his court date Thursday for his failure to appear.

Lugo was caught on security camera video taking the wine bottles, the store's loss-prevention manager, Robert Lesnick, told The Chronicle on Wednesday.

The three bottles of wine were never recovered, Ellicott said.

Caught on video

In San Francisco, a restaurant's security camera taped a man police identified as Lugo as he walked up Geary Street on July 5 with a framed artwork under his arm. Investigators suspect that the artwork was "Tête de Femme," which had been stolen moments earlier from the Weinstein Gallery. The gallery had been offering it for more than $200,000.

Lugo was arrested the next night while visiting friends in Napa. The sketch was found undamaged but ready to be shipped to an undisclosed destination, police said.

S.F. arraignment

Douglas Horngrad, Lugo's defense attorney, said he was aware of both the police raid and the New Jersey wine theft charges. "I'm looking into whether some psychiatric issues are at play," he said, declining to go into detail.

Lugo is scheduled to be arraigned Friday in San Francisco Superior Court in the heist of the Picasso drawing from the Union Square gallery. Horngrad said at Lugo's first court appearance Monday that his client planned to plead not guilty.