Lexington, Kentucky, October 11, 2025
News Summary
A Fayette Circuit Court judge has frozen the assets of Brad Pagel, owner of Lexington Blue Roofing, due to serious allegations of financial misconduct. The company left over $2 million in roof repairs either unfinished or never started, prompting investigations by the Kentucky Attorney General’s Office. Following the shutdown of operations and a Chapter 11 bankruptcy filing, the court has prohibited Pagel and his wife from accessing their financial assets and engaging in construction activities in Kentucky.
Lexington, Kentucky — A Fayette Circuit Court judge has frozen the assets of Brad Pagel, the owner of Lexington Blue Roofing, in a significant ruling announced on October 9th. The court’s decision comes amidst allegations of serious financial misconduct, leaving over $2 million in roof repairs either unfinished or never started for hundreds of affected clients who had already paid their deposits.
Judge Dianne Minnifield’s ruling restricts both Pagel and his wife from accessing their bank accounts and other financial assets as investigations continue. The Kentucky Attorney General’s Office is conducting an investigation into Lexington Blue Roofing based on numerous complaints from consumers, invoking the Consumer Protection Act.
Lexington Blue Roofing abruptly ceased operations in April and subsequently filed for Chapter 11 bankruptcy protection. Court records reveal that in the year leading up to its closure, the Pagels and their company received nearly $400,000. The court has additionally prohibited the Pagels from participating in any construction or roofing activities across Kentucky.
Financial Challenges and Operational Failures
In a detailed timeline provided in the Chapter 11 filing, Pagel mentioned that the company completed over 7,500 projects in 2021. However, it began to face severe financial challenges due to its dependency on high-interest loans and various operational failures, which ultimately led to significant cash flow problems.
By 2024, vendors stopped offering credit and demanded immediate repayment, which exacerbated the company’s dire financial situation. As complaints and refund requests overwhelmed the customer service department, the company faced an increasing number of operational issues, leading to employee layoffs starting in February 2025.
The Chapter 11 filing further discloses that Lexington Blue Roofing now owes over $3.2 million to former customers and employees, with under $50,000 in assets. More than 200 creditors have been identified in the bankruptcy proceedings, including customers from various Kentucky cities such as Lexington, Louisville, Frankfort, Nicholasville, Paris, Richmond, and Versailles, as well as some clients from Ohio.
Legal Actions Against Pagel
In addition to the asset freeze, Pagel is facing a lawsuit spearheaded by Kentucky Attorney General Russell Coleman. This legal action follows a previous court order that successfully froze Pagel’s assets as part of the broader inquiry into the operations of Lexington Blue Roofing.
The freeze on Pagel’s assets highlights the extensive impact of the company’s financial mismanagement and raises concerns about accountability in the roofing industry, particularly for consumers left in financial distress.
Conclusion
The situation remains fluid as investigations progress and legal actions unfold. The implications of this case serve as a cautionary tale for consumers and business owners alike, emphasizing the importance of transparency and financial responsibility.
FAQ
Lexington Blue Roofing Asset Freeze – Frequently Asked Questions
Why were Brad Pagel’s assets frozen?
The assets of Brad Pagel were frozen due to ongoing investigations into allegations of financial misconduct related to his company, Lexington Blue Roofing, which left over $2 million in roof repairs incomplete for numerous clients.
What were the financial difficulties faced by Lexington Blue Roofing?
Lexington Blue Roofing faced financial difficulties primarily due to a reliance on high-interest loans, operational failures, cash flow issues, and an overwhelming number of customer complaints that contributed to their ultimate closure.
What is the current status of the company?
As of now, Lexington Blue Roofing has filed for Chapter 11 bankruptcy protection and is facing a lawsuit from the Kentucky Attorney General’s Office.
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Additional Resources
- LEX18: Judge Freezes Assets of Failed Lexington Roofing Company Owner
- Wikipedia: Lexington, Kentucky
- Kentucky.com: Financial Misconduct Allegations
- Google Search: Lexington roofing company investigation
- WKYT: Lexington Roofing Company Closes Amid Investigation
- Encyclopedia Britannica: Roofing
- FOX56: Homeowners Scammed by Lexington Roofing Company
- Google News: Lexington Blue Roofing
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