Sudden closing of AGM Renovations leaves customers with few places to turn | CBC News

A Marketplace investigation into the sudden closing of a high-profile home renovation company has uncovered unfinished projects, allegations of fraud and an ongoing police investigation. The company is Ontario-based AGM Renovations, and the search for answers took Marketplace journalists thousands of kilometres overseas to find the man behind the company. 

The situation, said one politician, reveals the weaknesses of a system with too few viable options for consumers burned by company closures. Those options include pursuing the matter in court, going back to the company for a refund and contacting a provincial consumer protection authority for help. In the case of AGM’s closing, each option comes with its own challenges. 

Drew Carmichael hired AGM Renovations to work on his Oshawa, Ont., home in August 2024. The company was supposed to convert his basement into a legal apartment. But by the end of September, his $150,000 loan was maxed out and there wasn’t much to show for it.

By the time AGM announced its closing on Feb. 14 of this year, he said the project was only 30 to 40 per cent complete. “There’s all sorts of upgrades and materials that were like part of that build that were just never delivered on,” he said. 

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Carmichael hired new contractors to finish the job and said he’s paid at least $150,000 on top of the money he owes to loan company Financeit. The experience, he said, has also taken a toll on his health. “My blood pressure and all the metrics around my heart and stuff have [markedly] deteriorated in the last six or nine months.”

Now, he is one of eight plaintiffs in a joint lawsuit against AGM Renovations and CEO Ivan Atanasov. The allegations include fraud, negligence and breach of contract, for which the plaintiffs are seeking $1,360,655.58 in damages. 

For Carmichael, going to court is worth the cost and effort, but the road ahead is uncertain. His lawyer hasn’t been able to locate Atanasov. And while some of the cases brought against AGM and Atanasov resulted in default judgments, there’s no guarantee the plaintiffs will get their money back. 

NDP consumer affairs critic Tom Rakocevic says the current consumer protection regime sends too many people to the courts. “The government’s not willing to do the enforcement, the investigation,” he said. “Individuals are forced to have to go to the court, wasting time and money.”

Marketplace has learned that there may be additional legal fallout for AGM and Atanasov. Halton Regional Police Service in Ontario confirmed it is currently investigating two complaints against the company, but would not provide more details. 

Consumer Protection Ontario: your complaint will go nowhere

Ramon Guanzon of Cambridge, Ont., hired the company to work on his basement in January 2025. He also got a loan from Financeit to help cover the cost of the project and he released $66,449.14 to AGM on Feb. 7. Unfortunately for Guanzon, the company announced it was permanently closing a week later. 

“I was shocked,” he said. None of the work was completed and he says he received no materials for the project. 

“They scammed me. That’s how I felt.” 

Guanzon has not received a refund from AGM despite his attempts to contact the company directly. 

Faced with a large debt and no work to show for it, Guanzon did what experts say consumers should do: he contacted Consumer Protection Ontario for help. Marketplace documented the call and captured a poignant moment that Guanzon described as “very disappointing.” 

When he asked if he could file a complaint, the representative told him “it goes nowheres.” She added that his experience with AGM was “not under our scope.” Instead, she directed Guanzon to the Better Business Bureau, the Office of the Superintendent of Bankruptcy and the Canadian Anti-Fraud Centre. Guanzon still opted to file complaints against AGM and Financeit. The results are pending. 

Rakocevic said the response was surprising and frustrating. “You hear it from the minister, from the government, from the premier himself: ‘Call Consumer Protection Ontario. Register that complaint,’” he said. “This is the exact kind of calls that they should be very interested in having and dealing with.”

We shared Guanzon’s experience with Stephen Crawford, minister of public and business service delivery and procurement. He oversees Consumer Protection Ontario. In a statement, his spokesperson said, “Concerns brought forward are examined on a case-by-case basis to determine appropriate action. Depending on the circumstances, this may include referrals, mediation, or enforcement measures.” 

Marketplace also asked Ontario Premier Doug Ford to weigh in. Premier Ford promised to look into the incident and said, “I can’t stand when you say there’s nothing that can be done. A lot of people put their life savings out and then something happens or the company goes bankrupt. We’ve got to protect them.”

Rakocevic says the province is underachieving in doing just that. So he is calling for a new, independent consumer watchdog. “Someone that could fine, someone that had the money and the resources to undertake investigations, look at practices across the industry and more, and hold bad actors to account,” he said. 

Tracking down Atanasov

For those who believe Atanasov acted in bad faith when he closed AGM, accountability has been a challenge. 

Marketplace checked AGM Renovations’ head office and found a locked door and no staff on site. Journalists also visited a residence listed for Atanasov in corporate documents. He wasn’t there and didn’t respond to a message left by co-host Asha Tomlinson afterward.

With the help of colleague Ivan Angelovski from CBC’s visual investigations unit, Marketplace traced Atanasov to a home in Bulgaria — a country where he’s known to have ties. Property records confirmed he purchased a home there earlier this year. A team travelled to Bulgaria to try to get answers for Carmichael, Guanzon and other customers left in the lurch by the company’s closing. 

The plan was to approach Atanasov at the house. But first, the team stopped to check out two buildings linked to the AGM CEO. Police stopped the journalists twice. A security consultant advised the team to leave the country over a concern that a third run-in with police could see them detained or possibly arrested. 

So Marketplace sent Bulgarian journalist Maria Cheresheva to approach the home and watched the events unfold remotely from nearby Romania. 

Cheresheva rang the doorbell several times before a voice responded through the speaker. “Hello, Ivan Atanasov?” she said. The voice replied in Bulgarian, “Yes, yes. I am listening to you.” But when Cheresheva asked about his response to AGM customers who feel betrayed, the speaker went silent.

Marketplace attempted to follow up with Atanasov for a written statement, but has received no response. 

For its part, loan company Financeit is also suing AGM Renovations and Atanasov, alleging fraud and deceptive trade practices. 

The company told Marketplace in a statement, “When a company like AGM closes after funds have already been released with customer approval, both homeowners and Financeit are left in a difficult position. While we cannot comment on individual cases, in the rare cases where there are disputes, we review each situation and find the best solution based on individual circumstances.”

Guanzon said he has accepted an offer from the company to reduce his debt by 50 per cent.