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Caroline Giuliani, 20 (r.), leaves the 19th precinct Wednesdayin New York with mom, Donna Hanover.

The Ivy League daughter of former Mayor Rudy Giuliani was busted Wednesday for shoplifting at an upper East Side beauty store, cops said.

Harvard senior Caroline Giuliani was caught at about 3:30 p.m stealing $150 worth of cosmetics from Sephora on E. 86th St. and Lexington Ave., sources said.

"She was caught red-handed. She knew it, and didn't act out," a police source said.

The 20-year-old daughter of New York's toughest-talking law-and-order mayor was arrested for misdemeanor petty larceny and hauled out of the store in handcuffs.

She was taken to the 19th Precinct stationhouse and issued a desk appearance ticket that requires her to return to court on Aug. 31.

"She kept her head low and you could see her eyes were tearing up," a source said of her wait at the stationhouse.

Once store employees learned who the suspect's father was, they told cops they didn't want to press charges.

A spokeswoman for the Manhattan District Attorney Cyrus Vance Jr. said there's been no decision about whether prosecutors will pursue the case. "Once we review the case, we will decide whether or not to file a criminal complaint," said DA spokeswoman Erin Duggan.

Caroline smiled nervously as she walked out of the 19th Precinct at about 7:30 p.m. with her mother, Donna Hanover. Neither would comment as they climbed into a Chevy Suburban and drove to Hanover's East Side home.

"This is a personal matter and Mayor Giuliani asks the media to respect the privacy of his daughter at this time," said a spokeswoman for the ex-mayor. The father and daughter have had a frosty relationship since his divorce from Hanover in 2002.

"Caroline's is a lovely young woman," said her lawyer Michael Bachner, refusing further comment.

Police were reviewing surveillance video from the store.

"We were watching her on camera," a Sephora employee told the Daily News. "She was stealing mad stuff."

A store security guard found five cosmetics - including a Dior skin primer, Bliss moisturizer and a hairnet - stuffed in the pockets of Caroline Giuliani's jacket.

She graduated with honors in 2007 from Trinity High School on the upper West Side.

In August 2007, she made headlines by supporting Barack Obama for President, going against her father, who was then contending for the Republican nomination.

She had been working as an intern this summer in Hollywood for famed movie producerLynda Obst, who expressed shock over the arrest. "She is one of the smartest, most remarkable girls I know," Obst told the Daily News. "This is one of those silly young girl things."

READ MORE: NY Daily News