News Summary
A judge in Kentucky has issued a temporary restraining order freezing the assets of Lexington Blue and its owner, Brad Pagel, due to allegations of operating a Ponzi scheme. Filed by Attorney General Russell Coleman, the lawsuit follows reports from homeowners claiming they paid for unfulfilled roofing repairs. The order also allows the Attorney General to access company records and prohibits Lexington Blue from taking new contracts. A class action lawsuit has been initiated, revealing issues with bounced checks and unresolved customer complaints.
Lexington, Kentucky — A Kentucky judge has imposed a temporary restraining order that freezes the assets of Lexington Blue owner Brad Pagel as of June 2, 2025. This legal action comes after allegations of the company operating akin to a Ponzi scheme, as filed by Kentucky Attorney General Russell Coleman on May 30, 2025. The lawsuit was initiated following numerous reports from homeowners who claimed they had paid significant amounts for roofing repairs that were never completed.
Fayette Circuit Court Judge Diane Minnifield approved the order affecting not just Pagel’s assets but also those of Lexington Blue, various associated shell companies, and Pagel’s business partner, Alex Southwell. The Attorney General stressed that this legal action aims to protect Kentucky residents from predatory businesses and emphasize the importance of accountability for scammers.
In light of the allegations, Pagel has refrained from responding to media inquiries but took to Facebook to express feelings of being “demonized and vilified.” In his post, he claimed to have sacrificed everything to support others and described the portrayal of his actions as an unfair assault against him. Former employees have characterized the work environment at Lexington Blue as cult-like, filled with intimidation and threats.
Pagel alluded to the possibility of a bankruptcy solution for the company, suggesting in a deleted post that unresolved issues might be addressed if the company pursued bankruptcy proceedings. However, as of now, he has not filed for bankruptcy for either himself or his businesses.
The court’s order allows the Attorney General’s office to access Lexington Blue’s office to review and duplicate records. Lexington Blue is also barred from soliciting any new roofing contracts or requesting additional payments from existing customers. Documentation from Coleman’s office indicates that Lexington Blue may have collected deposits from approximately 300 to 429 consumers without delivering the promised services.
In 2024 alone, Lexington Blue reportedly received $4.8 million in payments for 329 unfulfilled roofing projects. The company’s financial arrangements are alleged to reflect the characteristics of a Ponzi scheme, utilizing new deposits from customers to settle older contracts while misappropriating funds for personal expenditures. To date, over 70 individuals in Kentucky have lodged formal complaints regarding substantial payments made to the company for uncompleted roofing projects.
A class action lawsuit has been established in Jefferson County against both Lexington Blue and Brad Pagel in response to multiple complaints from customers and former employees. Reports have surfaced of frequent bounced checks and unpaid bills during the company’s operations, which has bred mistrust within both staff and clientele.
The Better Business Bureau has received a multitude of complaints against Lexington Blue, which is currently undergoing an accreditation review. After experiencing prolonged difficulties, Lexington Blue has ceased operations, citing “internal disruptions and negative press” as contributing factors to this decision.
The Attorney General’s office is actively encouraging any individuals who feel they have been affected by Lexington Blue’s practices to come forward and seek assistance. This unfolding situation highlights ongoing concerns regarding consumer protection and the accountability of businesses in Kentucky.
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Additional Resources
- WDRB: Court Shuts Down Operations at Louisville Roofing Company
- Wikipedia: Roofing
- Kentucky Today: Roofing Company Idled
- Google Search: Lexington Blue roofing company
- LEX18: Lexington-Based Roofing Company Shuts Down
- Google Scholar: Kentucky roofing laws
- WDRB: Former Employee Speaks Out
- Encyclopedia Britannica: Consumer Protection
- WKYT: Failed Lexington Roofing Company Sued
- Google News: Lexington Blue lawsuit
