LAS VEGAS -- Socialite Paris Hilton has been banned from two Wynn resorts in Las Vegas following her arrest on cocaine charges. Her boyfriend has been dismissed from his job as nightclub manager.

Hilton, 29, was arrested on Friday for investigation of felony cocaine possession. Her boyfriend, Cy Waits, 34, was arrested on suspicion of misdemeanor driving under the influence.

Police say a bindle containing 0.8 of a gram of cocaine fell from Hilton's purse as she reached for lip balm. Hilton says the purse was not hers.

A spokesperson for the Wynn resorts, Jennifer Dunne, says Hilton will not longer be allowed on the properties. Dunne also said Waits has been dismissed as the nighclub manager at the Tryst Nightclub at Wynn and XS The Nightclub at Encore.

A lawyer for Paris Hilton is reportedly expected to argue that police performed an illegal search when the celebutante was arrested on felony cocaine possession charges.

According to RadarOnline, the ordeal was captured on surveillance video, which sources say could help Hilton.

Her lawyer, David Chesnoff, plans to claim the search was illegal because she was taken away from the scene to another location, the site reported.

Hilton also repeatedly claimed the purse wasn't hers during the arrest, according to a police report.

Authorities are defending their actions.

Hilton was treated "like everyone else," Deputy Chief Jim Dixon told the Las Vegas Review Journal.

Dixon said that the actress was not placed with other inmates at the county jail in order to avoid a disruption.

"We're under obligation to make sure that everybody is kept safe."

Police say they saw what appeared to be a cloud of marijuana smoke coming out of the windows of a black Cadillac Escalade being driven by Waits around 11:30 p.m. Friday.

A motorcycle officer stopped the SUV on Las Vegas Boulevard near the Wynn Las Vegas resort.

The officer "followed the vapor trail and the odor of marijuana to the Escalade," police Sgt. John Sheahan said.

A crowd quickly gathered in the area, and Hilton was taken into the Wynn hotel to "keep her safe" during the initial investigation, according to Officer Marcus Martin.

According to Sheahan, Hilton pulled a tube of lip balm out of her purse, and with it fell a bindle of cocaine in a plastic bag right into plain view of officers.

Both Hilton and Waits were booked at the Clark County Jail.

Hilton was released early Saturday morning, according to Watch Commander Lt. Wayne Holman.