A New Orleans-area company that handles online property auctions owes millions in court judgments stemming from allegations that it bilked local governments, investors and buyers across the country.
The firm, CivicSource, has sold tax-delinquent properties on behalf of local governments across Louisiana — and other states — for years, running a website where potential buyers can peruse and bid on properties that would otherwise be sold at sheriff’s auctions. In New Orleans, city officials say CivicSource abruptly stopped handing over proceeds from those sales, accusing the company of cheating the city and buyers out of $3 million. The company disputes that claim…