A recent investigation by Marketplace into the abrupt closure of a prominent home renovation company has unveiled incomplete projects, accusations of fraud, and an ongoing police inquiry. The firm in question is AGM Renovations based in Ontario, and the search for information led Marketplace reporters on a lengthy journey overseas to locate the individual behind the company.
According to a politician, this situation highlights the deficiencies of a system that offers limited options for consumers affected by company shutdowns. These options include legal recourse, seeking refunds from the company, and reaching out to provincial consumer protection agencies for assistance. However, each option presents its own set of challenges in the aftermath of AGM’s closure.
Drew Carmichael engaged AGM Renovations to renovate his residence in Oshawa, Ontario, in August 2024. The project involved converting his basement into a legal apartment. However, by the end of September, he had already exhausted his $150,000 loan with minimal progress visible.
When AGM announced its closure on February 14 of this year, Carmichael estimated that only 30 to 40 percent of the project had been completed. He expressed disappointment over missing upgrades and materials that were promised but never delivered.
Carmichael proceeded to hire new contractors to finalize the project, incurring an additional $150,000 in expenses on top of his outstanding loan with Financeit. The ordeal has also taken a toll on his health, with deteriorating vital signs over the past several months.
Currently, Carmichael is among eight plaintiffs involved in a collective lawsuit against AGM Renovations and its CEO, Ivan Atanasov. The allegations include fraud, negligence, and breach of contract, with the plaintiffs seeking $1,360,655.58 in damages.
Despite the cost and uncertainty of pursuing legal action, Carmichael remains committed to the process. However, challenges persist, as Atanasov remains elusive, and previous cases against AGM and Atanasov have resulted in default judgments, leaving the recovery of funds uncertain for the plaintiffs.
Ontario NDP critic Tom Rakocevic has criticized the existing consumer protection framework, noting that it often pushes individuals towards litigation due to government inaction on enforcement and investigations. The revelation that Halton Regional Police Service is investigating two complaints against AGM and Atanasov has added to the legal complexities surrounding the case.
Ramon Guanzon, a resident of Cambridge, Ontario, faced a similar predicament after hiring AGM for a basement project in January 2025. Despite releasing funds amounting to $66,449.14 to AGM, the company declared closure a week later, leaving the project unfinished and Guanzon without any materials.
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