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The saga continues … TMZ reports that Oksana Grigorieva told authorities Mel Gibson plotted to break the kneecaps of … TMZ head honcho Harvey Levin.

Oksana’s rep, Steve Jaffe, told Harvey earlier this week that Mel had described to Oksana a plot to kill him. The motive? Revenge against Levin – and Jews.

According to Oksana, Mel told her he was livid that TMZ broke the story about his DUI arrest and insane anti-Semitic rant way back in the summer of ’06.

Jaffe said Oksana told him Mel wanted the “blood of Jews” on his hands. Guess by being Jewish and running TMZ, Levin is basically Satan in Mel’s mind.

We haven’t even gotten to the details. Oksana Grigorieva said Mel had someone do “surveillance” on Harvey, having him followed to the gym at 4 a.m.

The plan? To abduct the legal eagle and celebrity gossip executive, strip him, take him deep into the desert, break his kneecaps and leave him to die.

According to TMZ’s report on this story, the desert/kneecap plot was investigated and is false. First off, Oksana had the wrong gym Harvey Levin frequents. 

More significantly, Oksana never mentioned this to her lawyers while she tried negotiating the $15 million deal with Gibson in May during their mediation.

At the time, she was wielding one Mel Gibson tape after another as a weapon, using “every piece of ammunition imaginable” to score financially from Mel.

One would think a plot to off Harvey Levin would come up then if she really had knowledge of one. This story only makes Oksana look sketchier than ever.

Oksana claims to have told officials about the plot. Not so.

Says an L.A. Sheriff’s Department spokesman: “We categorically deny that any such information was ever given to the L.A. County Sheriff’s Department.”

It appears to us that whatever Mel Gibson is guilty of, Oksana is clearly hurting her own cause with shady behavior attempts to tarnish his image more.