A recent investigation by the team at Marketplace has shed light on the sudden closure of a prominent home renovation company, revealing a trail of unfinished projects, allegations of fraudulent activities, and an active police inquiry. The firm in question is AGM Renovations, based in Ontario, and the pursuit of answers led Marketplace reporters on an extensive journey overseas to track down the company’s figurehead.
The unfolding scenario has exposed the vulnerabilities of a system that lacks ample recourse for consumers left in the lurch by company shutdowns. Available options for affected individuals include legal action, seeking refunds directly from the company, and reaching out to provincial consumer protection agencies for assistance. However, each avenue presents its own set of obstacles, as highlighted by the aftermath of AGM Renovations’ closure.
Drew Carmichael, a resident of Oshawa, Ontario, enlisted AGM Renovations in August 2024 to transform his basement into a legal apartment. Despite a substantial investment of $150,000, by the end of September, the project remained significantly incomplete, with Carmichael expressing frustration over unfulfilled promises and undelivered materials.
Following AGM’s abrupt announcement of closure on February 14 of the current year, Carmichael resorted to hiring alternative contractors to complete the project, incurring additional costs exceeding $150,000 on top of his outstanding loan with Financeit. The ordeal has not only strained his finances but also taken a toll on his health, with Carmichael noting a decline in his overall well-being in recent months.
As part of a collective effort, Carmichael is now among eight plaintiffs involved in a joint lawsuit against AGM Renovations and its CEO, Ivan Atanasov. The legal action encompasses accusations of fraud, negligence, and breach of contract, with the plaintiffs collectively seeking $1,360,655.58 in damages for the harm caused.
Despite the legal recourse being pursued, challenges loom large in holding Atanasov accountable, with the plaintiffs facing uncertainties in recovering their losses. The inability to locate Atanasov poses a significant hurdle, with default judgments in some instances failing to guarantee restitution for the affected parties.
Moreover, the investigation has unearthed potential legal ramifications for AGM and Atanasov, with the Halton Regional Police Service confirming ongoing scrutiny into two complaints lodged against the company, although specifics on the nature of the investigations remain undisclosed.
Ramon Guanzon, a resident of Cambridge, Ontario, shares a similar plight, having engaged AGM for a basement renovation project in January 2025. Despite disbursing $66,449.14 to the company in early February, the closure announcement shortly thereafter left his project incomplete and him out of pocket. Disheartened by the experience, Guanzon’s attempts to secure a refund directly from AGM proved futile, prompting him to seek assistance from Consumer Protection Ontario, only to face a disappointing response redirecting him to alternative avenues for recourse.
The minimal support offered by regulatory bodies has drawn criticism from NDP consumer affairs critic Tom Rakocevic, who advocates for the establishment of an independent consumer watchdog to safeguard the interests of consumers and hold accountable entities engaging in fraudulent practices.
In efforts to trace Atanasov and seek accountability, Marketplace’s investigative team encountered challenges, with physical visits to AGM’s office and Atanasov’s residence yielding no leads. A subsequent investigation led the team to Bulgaria, where Atanasov was eventually located, albeit evading direct contact with the media team.
Meanwhile, Financeit, the loan company associated with AGM Renovations, has initiated legal action against the defunct company and Atanasov, citing fraudulent activities and deceptive business practices. In response to the unfolding events, Financeit expressed a commitment to evaluating individual cases and arriving at equitable resolutions, with Guanzon disclosing his acceptance of a partial debt reduction offer extended by the company.