[FrankWakefield]

First, once the auction house no longer has the item, they need to immediately STOP accepting bids and STOP trying to sell it. Existing bids should be voided. Update the listing with NO LONGER AVAILABLE AT THIS TIME, and mention on the front page of the auction exactly what has happened. To continue to try to sell something they don't have is misleading.

Next, communicate directly with each of the consignors of the items that aren't available about what has occurred; and with their insurance company, immediately.

Keep law enforcement, the insurance folks, and the consignors, informed of updates as they are available.

Again, you can't sell something you don't have, and it's wrong to go through the steps involved with the auction when the item is gone.

And finally, contemplate about what happened, how it happened, and what changes can be done to minimize it happening again; then implement those changes.