Lexington, August 13, 2025
News Summary
In Lexington, homeowners gathered to challenge Brad Pagel, owner of Lexington Blue, at a bankruptcy creditors’ meeting. Many accused him of fraud, asserting they paid for roofing repairs that were never executed. The company, which filed for Chapter 11 bankruptcy, left over 260 roofing projects unfinished, prompting investigations and a consumer fraud lawsuit from the Kentucky Attorney General’s office. Homeowners seek refunds as investigations uncover a troubling history of alleged deceptive practices and misconduct.
Lexington
Homeowners gathered in Lexington to confront Brad Pagel, owner of Lexington Blue, during a bankruptcy creditors’ meeting held at the U.S. Bankruptcy Court. This gathering was marked by accusations from homeowners who claimed they had paid for roofing repairs that numerous alleged were never completed. The meeting has attracted significant attention due to ongoing investigations and a consumer fraud lawsuit filed against Pagel and his company.
Homeowner Judah Noe accused Pagel of taking thousands of dollars from clients for unfinished work, declaring his determination to reclaim his money. Another homeowner, Rene Hankey, voiced her frustration, labeling Pagel a thief for the payments made without any services rendered. Within this turbulent atmosphere, Pagel, accompanied by attorney Adrienne Southworth, expressed his hope of addressing the concerns of affected homeowners while calling for patience during this complicated process.
Lexington Blue, which ceased operations in April 2025, filed for Chapter 11 bankruptcy in June of the same year, leaving over 260 roofing contracts incomplete valued at more than $1.6 million. Attorney J. Christian Dennery proposed a plan to bundle unfinished contracts, aiming to attract additional contractors to solve the backlog of unfinished projects. However, the U.S. Trustee’s office has opposed this plan and is advocating for a transition to Chapter 7 bankruptcy, which would prioritize asset recovery instead.
Pegel has described his financial situation as dire, claiming he is broke and living in a prepaid rental. His financial dealings have raised eyebrows, as he invoked the Fifth Amendment during the creditors’ meeting in response to inquiries about his company’s finances. This lack of transparency has added to a growing frustration among homeowners, many of whom paid substantial amounts upfront for services that were never delivered.
The situation has drawn scrutiny from the Kentucky Attorney General’s office, which has initiated a consumer fraud lawsuit against Pagel and Lexington Blue, citing deceptive practices and alleging that the company collected nearly $5 million for over 300 projects in 2024, the majority of which went uncompleted. The lawsuit reflects rising concerns among patrons who allegedly experienced similar issues.
Former employees of Lexington Blue have also come forward with accusations of misconduct, claiming the company operated with intimidation tactics and fraud, referring to the company culture as that of a “cult.” Customers have reported significant financial losses; for instance, one client, Lindsay Truong, disclosed a payment of $13,000 for repairs that never commenced. A former office manager, Michelle Davidson, commented on how the company often instructed its employees to provide misleading information to clients, which has worsened the ongoing crisis.
The Better Business Bureau has received numerous complaints regarding Lexington Blue, with its accreditation currently under review. The cumulative effect of these complaints, investigations, and the looming lawsuits has placed substantial pressure on both Pagel and his company as homeowners cry out for justice and refunds for their unfulfilled contracts.
Ongoing Developments
As the bankruptcy proceedings continue, homeowners remain hopeful that the court will enforce measures to recover their funds. Attorney General Russell Coleman’s ongoing investigation is expected to play a significant role in determining the outcome for affected clients.
FAQs
What led to the bankruptcy filing of Lexington Blue?
Lexington Blue filed for Chapter 11 bankruptcy due to a combination of uncompleted roofing contracts and ongoing financial difficulties, leaving over 260 contracts valued at more than $1.6 million unfinished.
What allegations are being made against Brad Pagel and Lexington Blue?
Pagel and his company are facing allegations of consumer fraud for deceptive practices, including taking payments for work that was never completed. The Kentucky Attorney General has filed a lawsuit against them.
What plans does the U.S. Trustee’s office have for Lexington Blue’s bankruptcy?
The U.S. Trustee’s office is opposing the proposed plan to bundle unfinished contracts and is advocating for a conversion to Chapter 7 bankruptcy to facilitate asset recovery for creditors.
What is the current status of project completions with Lexington Blue?
Most projects remain incomplete, and many homeowners are actively seeking refunds for the payments they made in good faith, resulting in legal actions and ongoing investigations.
| Feature | Details |
|---|---|
| Company Name | Lexington Blue |
| Owner | Brad Pagel |
| Bankruptcy Filed | June 2025 |
| Contracts Incomplete | Over 260 contracts worth more than $1.6 million |
| Allegations | Consumer fraud and deceptive practices |
| Attorney General Lawsuit | Filed against Pagel and Lexington Blue |
| Better Business Bureau Status | Accreditation under review due to complaints |
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Additional Resources
- Fox56 News
- Kentucky.com Article
- WDRB News
- LEX18 News
- WTVQ News
- Wikipedia: Lexington
- Google Search: Lexington Blue roofing company
- Google Scholar: Lexington Blue lawsuit
- Encyclopedia Britannica: Consumer Fraud
- Google News: Lexington Blue scam
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