A recent inquiry by Marketplace delving into the abrupt closure of a prominent home renovation firm has revealed a trail of incomplete projects, accusations of deceit, and an ongoing police inquiry. The company under scrutiny is AGM Renovations based in Ontario, requiring Marketplace reporters to traverse thousands of kilometers overseas to track down the individual behind the enterprise.
According to a public figure, this scenario highlights the deficiencies in a system offering limited recourse for consumers affected by business shutdowns. Remedies include legal action, seeking refunds from the company, or enlisting the assistance of provincial consumer protection authorities. However, each avenue presents its own set of obstacles.
In August 2024, Drew Carmichael engaged AGM Renovations to renovate his residence in Oshawa, Ontario, with the objective of converting his basement into a legal apartment. By September, Carmichael found himself in a precarious position as his $150,000 loan was exhausted with minimal progress on the project.
When AGM announced its closure on February 14 of the following year, Carmichael estimated that the project was only 30 to 40 percent completed, lamenting the absence of numerous upgrades and materials promised during the construction.
Facing a predicament, Carmichael hired alternative contractors to finalize the work, incurring additional costs exceeding $150,000 on top of the outstanding loan from Financeit. The ordeal has not only strained his finances but also adversely impacted his health, evident in deteriorating vital health metrics.
Subsequently, Carmichael joined seven others in a collective lawsuit against AGM Renovations and its CEO, Ivan Atanasov, citing allegations of fraud, negligence, and contract breaches, seeking damages totaling $1,360,655.58.
Despite the legal actions, locating Atanasov has proven challenging for Carmichael’s legal representation, with uncertainties regarding the prospects of recovering the financial losses. The Ontario NDP critic, Tom Rakocevic, criticized the current consumer protection framework, emphasizing the necessity for an independent regulatory body to safeguard consumers effectively.
Further investigations have unveiled potential legal repercussions for AGM and Atanasov, with the Halton Regional Police Service in Ontario confirming ongoing probes into two complaints against the company.
Another affected individual, Ramon Guanzon from Cambridge, Ontario, shared a similar disheartening experience after entrusting AGM with his basement renovation project. Despite his efforts to seek redress directly from the company, Guanzon received no refund and contacted Consumer Protection Ontario for assistance, only to be redirected to other entities without a resolution in sight.
The response received by Guanzon raised concerns, prompting calls for enhanced consumer protection measures by Rakocevic and others. This sentiment was echoed by Stephen Crawford, overseeing Consumer Protection Ontario, and Ontario Premier Doug Ford, who pledged to investigate and fortify safeguards for consumers facing similar predicaments.
In efforts to hold Atanasov accountable, Marketplace embarked on a quest to locate him, eventually tracing him to Bulgaria, where he recently acquired property. However, attempts to confront him were met with challenges, prompting the involvement of a Bulgarian journalist to approach Atanasov, albeit yielding no substantial response.
Additionally, Financeit has initiated legal action against AGM Renovations and Atanasov for alleged fraudulent practices. As per Financeit, a resolution is sought based on individual circumstances, with Guanzon disclosing his acceptance of a reduced debt settlement offer from the company.