- Former Appraisal Institute executive Alissa Akins alleges the organization falsified certification test results by ignoring state-specific passing thresholds since 2020.
- The lawsuit claims Akins was fired for refusing to participate in the fraud and reporting it to leadership and HR.
- As a result of the flawed system, unqualified individuals may have been licensed, while others were incorrectly told they failed.
- The suit follows broader leadership turmoil at AI, including the recent ouster of its CEO and internal pushback against proposed reforms.
The Allegations
Alissa Akins, a former education director at the Appraisal Institute (AI), filed a civil lawsuit in Chicago on Friday, claiming the nonprofit has been supplying fraudulent exam results to state licensing boards since at least 2020. The tests, which assess compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), are required for appraisers to maintain certification, according to Bisnow.
One Test, Many Standards—But One Score Used
According to the complaint, AI failed to apply state-specific passing thresholds, instead using a single standardized score. The result: some appraisers were incorrectly told they had failed, while others passed despite not meeting their state’s requirements. Akins claims she discovered the issue in September 2024 and was met with resistance when she proposed corrective action.
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Retaliation Alleged
After requesting her name be removed from certification materials, Akins says she received a message from interim CEO John Udelhofen discussing an employment separation package. She was ultimately terminated in December. Her lawsuit seeks back pay, punitive damages, and legal fees, but her attorney says the main goal is public accountability.
AI Silent, Critics Speak Out
The Appraisal Institute has not commented on the lawsuit. Former CEO Cindy Chance, who was forced out last fall, told Bisnow that the issues Akins raised align with her experiences trying to reform the organization. “I was hired to turn the organization around and hired her in turn to do the same,” Chance said.
Certification Integrity in Question
The lawsuit raises the possibility that appraisers are currently working with credentials based on faulty test results. “Had AI reported the results properly, these individuals would likely not have gotten licensed,” said Akins’s attorney, Jordan Matyas.
Under Scrutiny
The controversy comes as AI faces mounting internal and financial challenges. The organization ran a $1.2M deficit in 2024, though it claims to be financially stable. AI and McKissock control the bulk of continuing education for the industry—a system critics have described as opaque and overly profit-driven.
Why It Matters
If proven, the allegations could shake confidence in the appraisal certification process nationwide, potentially prompting state-level audits and reforms. The case also underscores broader concerns over governance and accountability in the organizations that regulate the appraisal profession.
What’s Next
As the civil suit moves forward, attention will turn to how state regulators respond—and whether AI and its partners revise their testing procedures to restore credibility.
