Lindsay's Jewelry Store -- AUCTIONING the Necklace

3/9/2011 11:48 AM PST

Lindsay Lohan -- Jewelry Store AUCTIONING the Necklace

The $2,500 necklace that Lindsay Lohan allegedly stole from a jewelry store is officially hitting the auction block ... TMZ has learned.

A rep for the Kamofie and Co. jewelry store announced, "We have decided to sell the diamond necklace through auction, and give the proceeds to charity."

As for the specific charity -- the rep states, “We invite the public to make suggestions as to the most appropriate charity to receive the benefit of the sale’s proceeds."

According to the rep, the auction will not take place until AFTER the criminal case is resolved "by plea bargain, or trial or some other means."

The necklace is currently being held as evidence by the L.A. County District Attorney.