When I had a Consignment Store in town I would get notice of something like local kleto (sim) has struck again and the victim (sim) had to reclaim there car, tv, etc from the local consignment shop

Oh. Interesting. I've never seen that. Perhaps I've never had Sims with that trait in town.

That's why I'm wondering if it's just money that is being taken out of the family funds instead of an actual object.

Cause right now without the Consignment Shop I get stories local klepto (sim) has struck again and stolen something from victim (sim) but it's not telling me what it is

The SP Extra Module has a few Personalities related to the Base and WA their different from the other Personalities from the Personality Modules and pushes Klepto's, Mummy Anger, Pyro's, Hunter Hate and Part Animals

I was in Town View and happen to catch it by chance a story popped up about one of the klepto's turns out what happens is SP picks a random item and deducts the money value from the victims family funds and adds it the klepto's so no item is actually being stolen just a transfer of money value.
And on a side note if your in Sunset Valley and you have Lisa Bunch in your sims house keep an eye on her otherwise she'll steal your sims toilet

Okay, looks like this is coming from the personalities, particularly cops and robbers. The code does have the option to take the object but it doesn't appear to be used that I can see. So yes, a money exchange.

On rare occasions when my sim is not home one of the klepto's or other personalities will break in and steal something from my sims home so maybe that's why there is an option to take an item which would make sense since an active sim can easily replace an item but an inactive can't and would be a PITA for the user to replace them especially if they go on a stealing spree.
I will say though the klepto's in this town are pretty prolific not one day goes by were are least 5 of them steal something I somehow ended up with 15 of the little buggers