The closure of AGM Renovations has left many customers in distress, grappling with unfinished projects and significant financial losses. Based in Ontario, AGM Renovations suddenly ceased operations on February 14, raising concerns about the company’s practices. Customers have reported numerous allegations ranging from fraud to negligence as investigations unfold.
Impact on Customers
Drew Carmichael, a resident of Oshawa, Ontario, hired AGM Renovations in August 2024 for a basement renovation that was intended to create a legal apartment. By September, Carmichael exhausted a $150,000 loan, yet the project remained poorly executed, with only 30 to 40 percent complete. He voiced frustrations about incomplete upgrades and missing materials.
Faced with despair, Carmichael hired new contractors, incurring additional expenses exceeding $150,000. He is among eight plaintiffs filing a joint lawsuit against AGM Renovations and its CEO, Ivan Atanasov, seeking over $1.36 million in damages.
Legal Challenges and Consumer Protection
As affected customers seek resolution, the legal landscape for holding AGM Renovations accountable remains uncertain. Ontario’s consumer protection framework has been criticized for inadequacy. NDP consumer affairs critic Tom Rakocevic highlighted the need for a dedicated independent watchdog to support consumers who face such challenges.
- AGM Renovations’ closure leaves several legal routes for unhappy customers.
- Options include court actions, seeking refunds, or approaching provincial consumer authorities.
- Many customers find these options inefficient and frustrating.
Ramon Guanzon, who also hired AGM for his basement renovation, found the response from Consumer Protection Ontario to be disappointing. After paying $66,449.14, he discovered the company had ceased operations shortly after receiving his payment. Guanzon attempted to file complaints, but was informed they would go nowhere.
Ongoing Investigations
Halton Regional Police Service is currently investigating multiple complaints against AGM Renovations, adding another layer to this troubling situation. However, police refused to provide further specifics. Meanwhile, Financeit, a company that helped finance some of AGM’s projects, has also initiated legal action against the firm and Atanasov, citing fraud and deceptive practices in business dealings.
Tracing Ivan Atanasov
Accountability for Atanasov’s actions remains a challenge. Attempts to reach him at AGM’s headquarters were unsuccessful, as the office was locked and unstaffed. Investigations led to Bulgaria, where Atanasov reportedly has ties. Journalists attempted to confront him at his residence but faced complications from local authorities.
An encounter with Bulgarian journalist Maria Cheresheva showed little progress. When she sought to question Atanasov regarding the unsatisfied customers, he did not respond. Despite ongoing lawsuits and media scrutiny, Atanasov remains elusive, making it difficult for affected clients to secure justice.
Conclusion
As the situation unfolds, many individuals affected by AGM Renovations’ abrupt closure are left in financial limbo. The complexities of legal action and the shortcomings of consumer protection in Ontario highlight the urgent need for reform. For now, customers like Carmichael and Guanzon are left to navigate a daunting path toward resolving their grievances.
