Appraisal Institute Hit With Explosive Whistleblower Suit

The Appraisal Institute is facing a sprawling legal attack from a former top executive who alleges the organization was riddled with financial mismanagement, insider dealing and retaliation.

Craig Steinley, former president of the Chicago-based nonprofit, filed a defamation and whistleblower lawsuit accusing the organization and several active and former leaders of forcing him out of the trade group, Bisnow reported. The complaint follows a tumultuous year for the Appraisal Institute, whose internal drama has spilled into public view amid mounting questions about its finances and oversight.

Steinley was removed from the board last year after former chief executive officer Cindy Chance accused him of sexual harassment in a separate lawsuit.

Chance later dropped her claims against Steinley and settled with the organization on undisclosed terms. Steinley argues the allegations were never substantiated and that leadership weaponized them to sideline him as he raised concerns about the group’s operations.

The 45-page complaint paints a picture of an industry organization consumed by infighting while its finances deteriorated. Steinley alleges the Appraisal Institute inflated membership figures in tax filings, obscured losses tied to its education programs and steered contracts to insiders without competitive bidding.

He claims the organization knowingly overstated its membership count by including deceased and retired appraisers on its rolls.

The lawsuit also takes aim at the institute’s flagship PAREA training platform, launched in 2023 as an alternative pathway into the appraisal profession. Steinley alleges the program was financially underperforming and lacked proper intellectual property protections, while leadership continued presenting it as a success. The organization disputes those claims and says the program is operating profitably.

The complaint further accuses former presidents Sandra Adomatis and Paula Konikoff of years of costly international travel despite the organization having a relatively small overseas membership base. Steinley alleges reporting standards were changed to conceal where money was flowing as contracts were awarded to insiders.

The Appraisal Institute denied the allegations and said it remains focused on “strong governance” and its mission of supporting valuation professionals.

The lawsuit lands as the appraisal industry faces broader scrutiny over licensing standards, diversity and the shrinking pipeline of new appraisers.

— Holden Walter-Warner