An investigation conducted by Marketplace into the abrupt closure of a prominent home remodeling business has unveiled multiple unfinished projects, accusations of deceit, and an ongoing police inquiry. The company in question is AGM Renovations based in Ontario, and the quest for answers led Marketplace reporters thousands of kilometers overseas to locate the individual in charge of the company.
According to a political figure, the situation exposes the flaws of a system that lacks adequate options for consumers affected by company shutdowns. These options include pursuing legal action, seeking refunds from the company, and reaching out to provincial consumer protection authorities for assistance. However, in the case of AGM’s closure, each option presents its own set of challenges.
In August 2024, Drew Carmichael engaged AGM Renovations to renovate his residence in Oshawa, Ont., specifically to convert his basement into a legal apartment. By the end of September, he had exhausted his $150,000 loan, but the progress on the project was minimal.
When AGM declared its closure on Feb. 14 of this year, Carmichael claimed that the project was only 30 to 40 percent complete. He expressed disappointment over the unmet promises of upgrades and materials crucial for the construction.
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Carmichael proceeded to engage new contractors to complete the project and has reportedly paid an additional $150,000 on top of the loan amount owed to Financeit. The ordeal has taken a toll on his health, leading to deteriorating vital health indicators.
Currently, Carmichael is one of the eight plaintiffs in a combined lawsuit against AGM Renovations and CEO Ivan Atanasov, citing allegations of fraud, negligence, and breach of contract, with damages sought totaling $1,360,655.58.
Despite the uncertainties ahead, Carmichael believes pursuing legal action is justifiable, although locating Atanasov, as confirmed by his lawyer, has proven challenging. While some lawsuits against AGM and Atanasov resulted in default judgments, reimbursement for the plaintiffs is not guaranteed.
Ontario NDP consumer affairs critic Tom Rakocevic criticized the current consumer protection framework for pushing many individuals towards legal recourse. Rakocevic highlighted the government’s reluctance to enforce regulations and conduct investigations, resulting in individuals resorting to costly and time-consuming judicial proceedings.
Marketplace has uncovered potential further legal repercussions for AGM and Atanasov, with the Halton Regional Police Service in Ontario confirming ongoing investigations into two complaints against the company.
Frustrations with Consumer Protection Ontario
Ramon Guanzon from Cambridge, Ont., enlisted AGM Renovations for a basement project in January 2025, securing a loan from Financeit to finance the endeavor. He disbursed $66,449.14 to AGM on Feb