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Sedgwick County seal
For Immediate Release
Wednesday, December 10, 2025
Contact
Brandon Zenner
316-660-9370

Sedgwick County files $1.28 Million Theft Report with Sedgwick County Sheriff and Federal Law Enforcement Agencies Against CivicSource

(Sedgwick County, Kan.) – Sedgwick County officials have filed a theft report with the Sedgwick County Sheriff’s Office and federal investigatory authorities in relation to the theft of $1,281,357.08 by CivicSource, an online auction company from New Orleans, La., which provides property tax foreclosure services to municipalities in multiple states. These law enforcement agencies are continuing to gather information and further investigate this matter.

As required by statute, the Sedgwick County Treasurer’s Office identified properties with delinquent property liens for judicial tax foreclosure and judicial sale. Proper legal notice was provided to the owners alerting them that if they did not pay past due taxes, interest, and court fees, the properties would be sold through auction. On Sept. 11, 2025, the Sedgwick County District Court entered judgment foreclosing the delinquent liens and ordering that they be sold at public auction as required by Kansas statute. On Oct. 21, 2025, a valid online property tax foreclosure sale occurred, which was administered by CivicSource, resulting in their receipt of $1,281,357.08 in tax sale proceeds and fees. CivicSource was required to deliver those funds to the Treasurer who then applies the applicable funds to the delinquent taxes on the parcels that were sold at auction. The Treasurer provides those funds to the District Court, which then holds those funds in the Court’s registry pending any valid motions and orders to disburse those funds.

Currently, CivicSource has failed to transfer the $1,281,357.08 tax foreclosure sale funds to Sedgwick County. Sedgwick County has made repeated demands to CivicSource. However, CivicSource has failed to transfer the funds despite its chief executive officer’s numerous promises to do so.  

The Sedgwick County Treasurer’s Office entered into the professional services agreement with CivicSource in 2022 to administer the online property tax foreclosure sales. The County Treasurer obtained these services from CivicSource based upon the prior successful experiences of other counties that employed CivicSource. Thereafter, Sedgwick County Treasurer then utilized CivicSource for property tax foreclosure sales for multiple years without significant issues until 2025. The agreement with CivicSource was entered into without any approval or action of the Board of County Commissioners, without utilizing the County’s competitive bidding process and without consulting Sedgwick County’s legal counsel.

Sedgwick County intends to ensure funds are made available for the District Court to disburse to any party filing a valid motion claiming a right to the proceeds and upon issuance of a court order.

Sedgwick County has taken or intends to take the following actions:

  • Matter has been reported to local and federal law enforcement agencies
  • Pursuing any and all legal remedies to recover the funds
  • Board of County Commissioners will consider an agenda item on Dec. 17, 2025, to transfer approximately $1.28 million in funds in order to provide the District Court with the funds CivicSource has failed to transfer to Sedgwick County in order to make all third parties whole
  • Contract with CivicSource was terminated on Dec. 5, 2025
  • Pursuing potential debarment of CivicSource as a Sedgwick County vendor
  • Notification to purchasers of tax foreclosure properties managed by CivicSource
  • Informing the District Court of the nonpayment by CivicSource
  • Notification to other Kansas county treasurers that utilize CivicSource
  • Consider updates to Sedgwick County’s purchasing charter resolution to further clarify and define roles and authorities
  • Future changes to the tax foreclosure public auction process

Additional next steps will be discussed by the Sedgwick County Commission in the forthcoming week.

Any parties that are involved in property tax foreclosure action and have questions are encouraged to contact Christine Wilson in the Sedgwick County Treasurer’s Office, available by telephone at 316-660-9128.