A recent investigation by the team at Marketplace has shed light on the abrupt closure of a prominent home renovation company, revealing multiple unfinished projects, allegations of fraudulent activities, and an ongoing police inquiry. The company in question is AGM Renovations, based in Ontario, and the pursuit of answers led Marketplace journalists on an extensive journey overseas to track down the individual responsible for the company.
According to a politician, the situation highlights the shortcomings of a system that offers limited recourse for consumers affected by company shutdowns. Available options for affected individuals include legal action, seeking refunds directly from the company, or reaching out to provincial consumer protection agencies for assistance. However, each avenue presents its own set of challenges, as seen in the aftermath of AGM’s closure.
One homeowner, Drew Carmichael, enlisted AGM Renovations to undertake a project on his property in Oshawa, Ontario, back in August 2024. The company’s task was to convert his basement into a legal apartment. However, by the end of September, Carmichael found himself in a precarious position as his $150,000 budget was depleted with minimal progress on the project.
When AGM announced its sudden closure on February 14 of the subsequent year, Carmichael revealed that the project was only 30 to 40 percent complete, with numerous promised upgrades and materials left undelivered. Subsequently, Carmichael had to hire new contractors to complete the work, incurring additional costs on top of his existing financial obligations to Financeit, a loan company. The stress of the situation has also taken a toll on his health, with deteriorating health metrics over the preceding months.
Currently, Carmichael is one of eight plaintiffs involved in a joint lawsuit against AGM Renovations and its CEO, Ivan Atanasov. The lawsuit includes allegations of fraud, negligence, and breach of contract, with the plaintiffs collectively seeking damages totaling $1,360,655.58.
Despite the legal actions being pursued, locating Atanasov has proven to be a challenge. Marketplace’s efforts to track him down in Canada were unsuccessful, leading to an international pursuit that eventually pinpointed his whereabouts in Bulgaria. However, attempts to engage with Atanasov directly regarding the grievances of affected customers have so far yielded no response.
Consumer Protection Ontario came under scrutiny when a dissatisfied customer, Ramon Guanzon, sought assistance after being left in the lurch following AGM Renovations’ closure. Despite his efforts, Guanzon encountered limited support from the consumer protection agency, prompting calls for a more robust and responsive oversight mechanism to safeguard consumer interests effectively.
In light of the complexities surrounding AGM’s closure and the subsequent legal battles, the fallout extends to other entities such as Financeit, which is also pursuing legal action against the company and Atanasov over alleged fraudulent practices. While some customers have received partial resolutions, the overarching challenges faced by affected individuals underscore the need for enhanced consumer protection measures and accountability within the renovation industry.
