Former Appraisal Institute Exec Dropped From Sexual Harassment Lawsuit

Craig Steinley, a former executive at the Appraisal Institute, was dropped from a sexual harassment lawsuit filed by the trade group’s former CEO. 

The civil charges against Steinley and AI were brought by Cindy Chance, who was terminated from the top post at AI in September 2024. Chance is still pursuing the case against her former employer, alleging that senior leadership failed to take action over reports of inappropriate behavior from Steinley and a sexually charged work environment. 

“We welcome today’s actions dismissing Mr. Steinley from the case as a good first step, but the harm to him has been immeasurable and we will continue working to ensure actual justice is served, rather than the rushed campaign to destroy Mr. Steinley’s career and reputation that has been pursued by certain parties to this point,” Steinley’s attorney, Craig Capilla, said in a statement. 

The attorney who had been representing Chance in Illinois’ Cook County Circuit Court, Thalia Pacheco, also filed and was granted a motion to withdraw from the case. Court filings indicate that Chance, who didn’t appear at the hearing, has yet to find new representation.

Chance and Pacheco didn’t respond to multiple requests for comment this week. Judge John Tully, who took over the case this week from Judge Catherine Schneider, gave Chance until Aug. 26 to find a new attorney.

Becky Kalas, the attorney representing AI from Chicago-based law firm Ford Harrison, asked for and received additional time from the court to file a response to the allegations. 

“The Appraisal Institute can certainly take a generous extension, because Ms. Chance doesn't have a lawyer to prosecute the action,” Tully said during the brief hearing, held over Zoom. “So you can take all the time you need.”   

Kalas directed a media inquiry to the Appraisal Institute, which declined to comment.

Chance’s lawsuit, filed the same day that a New York Times investigation into Steinley and AI was published, alleges she experienced unwanted comments from Steinley about her appearance and their relationship. She alleges that senior leadership at AI were aware of multiple allegations from her and other women, and that they failed to take corrective action. 

The New York Times spoke with 12 women who said they had some type of uncomfortable interaction with Steinley, ranging from inappropriate comments to an allegation that Steinley groped Chance’s buttocks without her consent. 

The Times also uncovered a six-figure settlement AI paid to the group’s former chief financial officer who filed two discrimination claims against the Appraisal Institute and Steinley.

Chance’s civil case against Steinley was dismissed without prejudice Thursday, meaning the charges could be refiled at a later date. If hearings continue with AI as the sole defendant, Steinley could still be called as a witness and the allegations of inappropriate behavior could still form the basis of a judgement against AI, which provides continuing education and certification testing for the appraisal industry.

Steinley has categorically denied the accusations since they were made, describing the civil case as part of a smear campaign led by other members of AI, where Steinley was a longtime executive and most recently vice president. 

On May 13, less than a week after Chance’s case was filed, Steinley agreed to step back from any public-facing duties at AI but maintained active employment at the trade group. The decision was poorly received by several state and local appraisal groups, which publicly called on AI’s leadership to take more action. On May 22, Steinley was ousted from the agency.

At the time, he said in a statement through his attorney that the decision from the board of directors was “a deliberate act of retaliation driven by internal politics, not principle.” 

Chance’s case is one of two potentially damaging civil suits the organization is facing. 

Alissa Akins, the former director of education and publications at AI, filed a lawsuit in March alleging she was wrongfully fired after flagging faulty test scoring procedures at the agency. 

She alleged that AI leadership were aware that the agency was providing inaccurate test results to state-level oversight boards. The misreporting, which Akins’ attorney alleges amounts to fraud, had been happening since at least 2020.

At a hearing for that case this week, a judge sided with Akins on a request to copy the contents of her work computer, which remained in her possession after her termination. 

Jordan Matyas, the attorney representing Akins, told Bisnow this week that he was cooperating with two state investigations that are examining AI’s operations. 

AI is seeking to have Akins’ case dismissed, arguing in court documents that none of the allegations in her complaint, which the trade group disputes, amounted to fraud. The motion is set for a hearing on July 22.