I learn a lot from card land. Now I can add that auctioning off items you don't have and cannot deliver on to my list of things that are actually okay!
I would think it is basic common sense that mailing $2M of fairly small and easily stolen product to a hotel to then hold for you is a bad idea. I would think it is common sense that then selling items you do not have and cannot deliver on is pretty sleazy at best.
If I went on the BST and auctioned a nice card, waited for it to end, and then said "Hey, this card was actually stolen from me before this and I said nothing. Thanks for the bids, I just wanted to price it for insurance" would this board say I handled the situation in the best possibly way? Hell no, I would get roasted for days at best