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Citizen Arrest
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Post Citizen Arrest 
Can You Tell Me What Citizen Arrest Is?

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IC 35-33-1-4
Any person
Sec. 4. (a) Any person may arrest any other person if:
(1) the other person committed a felony in his presence;
(2) a felony has been committed and he has probable cause to believe that the other person has committed that felony; or
(3) a misdemeanor involving a breach of peace is being committed in his presence and the arrest is necessary to prevent the continuance of the breach of peace.
(b) A person making an arrest under this section shall, as soon as practical, notify a law enforcement officer and deliver custody of the person arrested to a law enforcement officer.
(c) The law enforcement officer may process the arrested person as if the officer had arrested him. The officer who receives or processes a person arrested by another under this section is not liable for false arrest or false imprisonment.

Typically we see this daily in the form of store security catching a shoplifter. They apprehend the offender fill out all of the necessary paperwork to support their claim and then must show up the next day in the Prosecutors office to affirm their actions.

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according to the above statute how is a loss prevention officer permitted to place someone under citizen arrest for criminal conversion, when statutes clearly states for a felony committed in presence of the l.p. officer or he/she believes a felony was just committed. conversion is not a felony. I also dont see how someone taking unauthorized control of the property of another would constitute a breach of the peace. Where am I wrong?

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I'm not sure that I follow your question. Criminal conversion can indeed be a felony.
The breach of peace does not refer to criminal conversion though it could be used in a citizens arrest incident involving criminal conversion when warranted. Criminal trespass is an example of breach of peace; battery is an example of breach of peace.

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