Appraisal Institute Settles Retaliation Lawsuit With Fired CEO
The Appraisal Institute and its former CEO Cindy Chance reached a settlement to end a bombshell lawsuit that alleged she was fired for retaliation after flagging sexual harassment as an issue at the nonprofit.
AI, which provides licensing classes to industry professionals, announced the settlement in a statement Friday. It also told its appraiser members Friday that it had settled the case in a weekly newsletter reviewed by Bisnow.
AI denied the central claim in Chance’s suit but said it believed settling was in the best interest of the organization, its members and the broader real estate finance system.
“This has been a learning experience, and much of that learning has come from member feedback identifying opportunities for improvement,” the note to members says. “We have heard from you — our members, chapters and stakeholders — and we are working diligently to address your concerns.
“We appreciate your patience and your support. We are moving forward together — with purpose, focus, and a shared commitment to advancing the appraisal profession.”
Terms of the settlement weren't disclosed. AI and Chance declined to comment Friday.
The settlement ends a case filed in May — which coincided with an investigation by The New York Times — in which Chance alleged that she was fired for flagging what she said were several complaints from multiple women about inappropriate interactions with Craig Steinley, a former AI president and one of its more active members.
Steinley, who has consistently denied the claims, at first stepped back from his public duties before he was forced out by the AI board of directors amid backlash about AI’s response to the lawsuit from members at chapter meetings and on social media.
He was dropped as a defendant in the case in June at the request of Chance’s lawyer. The civil suit was filed in Illinois’ Cook County Circuit Court on behalf of Chance by attorney Thalia Pacheco, who withdrew from the case after Steinley was dropped, leaving Chance without representation.
Chance joined AI as CEO in September 2023 and was fired the following September. She alleged in her suit that she was both a victim of harassment and felt pressured to help cover it up. She alleged that multiple employees came to her to voice their frustration with Steinley’s behavior and that he groped her buttocks and engaged in other inappropriate behavior.
The New York Times spoke with 12 women who said they had uncomfortable interactions with Steinley. The Times also uncovered a previously unreported $412K settlement AI paid in May 2024 to the firm’s former chief financial officer, who claimed that AI was a “sexually hostile work environment.”
Chance’s suit came shortly after Alissa Akins, another former employee, filed a lawsuit alleging she was forced out of her job after flagging issues with how AI scored some of its continuing education exams, resulting in faulty results that were passing appraisers who should have failed and vice versa.
AI filed a motion to dismiss the Akins suit, which was denied, and the case is pending.
The broader appraisal industry is facing a raft of challenges, including allegations of mismanagement at a public agency that is drawing scrutiny from Congress.
The Appraisal Subcommittee, a government agency responsible for regulating the industry, has been gutted by budget and staffing cuts amid turmoil at its top ranks, a July Bisnow investigation found.
Matt Ponzar, the acting head of the subcommittee, resigned last month, just before Bisnow’s investigation was published. Sens. Catherine Cortez Masto, a Democrat from Nevada, and Mike Rounds, a South Dakota Republican, have since sent a letter to the subcommittee seeking answers about the alleged management issues.
“The long-term stability of the ASC is critical to the residential and commercial real estate markets,” Cortez Masto said in a statement to Bisnow in July, calling for a plan “to curb the chaos at this vital agency.”
