A lawsuit filed by a fired Appraisal Institute employee is alleging that over multiple years, the organization misreported test scores to regulators and state agencies, refusing to rectify issues when they came to light.
Alissa Akins, former Director of Education and Publications at the Appraisal Institute, alleges that she was terminated after bringing the issue up with superiors. Separately, a New York Times investigation unearthed an alleged culture of sexual harassment perpetrated by former Appraisal Institute President Craig Steinley, who Akins also claims was part of the retaliation against her.
In its response to the lawsuit, lawyers for the Appraisal Institute wrote that Akins’ accusations don’t rise to the level of fraud or intentional misrepresentation, asking a judge to throw out the lawsuit.
“At best, Plaintiff claims that she informed (Appraisal Institute’s) interim CEO and then-Board President of her findings indicating the possibility of past errors,” lawyers for the Appraisal Institute wrote. “But there is no allegation in Plaintiff’s Complaint even suggesting that those individuals or anyone at (the Appraisal Institute) knew of errors, if any, at the time test results were originally reported.”
Steinley, according to the New York Times, is accused of groping or harassing “several” women, and is currently on leave from his position as vice president of the Appraisal Institute. Steinley was also behind Akins’ dismissal, according to the Times, though he has denied that, and also said the incidents of harassment “simply did not occur.”
A statement from Appraisal Institute President Paula Konikoff on the front page of its website acknowledges the Times’ article and promises a “thorough investigation” into the harassment and retaliation allegations.
The Appraisal Institute serves as the primary national advocacy organization for home appraisers, and administers tests and classes utilized by state licensing boards in determining licensing. It claims around 16,000 members around the world.
According to Akins’ lawsuit, there have been issues with test scores going all the way back to 2008. The Appraisal Institute has known about them since at least 2020, she alleged.
Functionally, Akins claims the Appraisal Institute has been relying on a third party for tests that are part of courses necessary for appraisers to become licensed or recertified, and that “some” of the exams were not utilizing the correct minimum scores.
That means some appraisers who actually failed their exams were allowed to pass, and also that some appraisers who passed were told they failed, and required to retake the test (and pay an additional fee), she claims. A sample of tests showed that 17% of exams were reported incorrectly, according to Akins.
Appraisal Institute executives told her the issue was a “don’t ask, don’t tell type policy” when she informed them of the incorrect testing standards, Akins claimed. After asking to have her signature removed from course completion certificates, Akins claimed supervisors began removing her from assignments and “generally undermining her authority with (her) team” before firing her roughly two months after she raised the test score issues.
“The Appraisal Institute categorically and whole heartedly denies that it has at any time engaged in fraudulent or retaliatory conduct,” lawyers for the organization wrote. “To the extent this litigation proceeds, Appraisal Institute maintains that facts adduced in discovery will support those denials.”
