News Summary
Kentucky Attorney General Russell Coleman has announced that Lexington Blue, a roofing company, must cease operations following a judge’s order amid an investigation into alleged fraudulent practices. Complaints from over 70 consumers detail deposits paid for unfinished roofing projects. The court has also frozen the company’s financial assets to prevent further exploitation. The Attorney General’s office aims to protect consumers and ensure accountability in the roofing industry.
Lexington
Kentucky Attorney General Russell Coleman announced that a judge has ordered Lexington Blue, a roofing company, to cease all operations and marketing as part of an ongoing investigation into alleged fraudulent practices. Fayette Circuit Court Judge Diane Minnifield issued the mandate amid mounting complaints from consumers about the company’s unlawful business operations.
The court’s decision also includes a freeze on Lexington Blue’s financial assets, which encompasses both corporate and personal accounts. This measure prevents any transfer or liquidation of these funds, further complicating the company’s financial situation.
More than 70 consumers have lodged complaints against Lexington Blue, stating they have paid deposits for roofing projects that remain unfinished. In 2024 alone, the company reportedly accepted $4.8 million in deposits for over 300 roofing projects, many of which have yet to be completed. Coleman has characterized the operational practices of Lexington Blue as being similar to a Ponzi scheme, where new consumer deposits are allegedly utilized to fulfill pre-existing contracts while substantial funds are redirected for personal gain.
The Attorney General emphasized the government’s resolve to safeguard Kentuckians from predatory businesses, underscoring the importance of maintaining consumer trust in the marketplace. His office is spearheading the investigation, with collaborative support from the AG’s Senior Protection and Mediation division.
As part of the court order, Lexington Blue is prohibited from soliciting new roofing business or requesting additional payments from existing customers. This restriction aims to prevent further exploitation of clients during the investigation process.
Company’s Troubling Culture
Reports from former employees paint a troubling picture of the company’s internal culture. Described as cult-like, there are allegations of intimidation tactics employed to maintain control over both employees and customer relationships. The atmosphere within the company reportedly contributed to the operational decisions that have led to numerous consumer complaints.
The owner of Lexington Blue, Brad Pagel Jr., has voiced feelings of being “demonized and vilified” but has refrained from addressing the specific charges made against him or the company through media outlets. While expressing hope that bankruptcy could resolve issues surrounding the company, he has yet to file for bankruptcy protection for himself or Lexington Blue.
Legal Actions and Consumer Support
Lexington Blue closed its operations in late April 2024 as the flood of customer complaints intensified alongside a class action lawsuit against the company. Customers are encouraged to report their experiences and seek assistance through the Attorney General’s office, available at 888-432-9257. The office remains dedicated to assisting those impacted by the alleged unscrupulous practices of Lexington Blue.
This ongoing situation underscores the critical need for vigilance and accountability in consumer services, particularly in industries like roofing that require trust and integrity to ensure customer safety and satisfaction. As the investigation unfolds, more information may emerge, revealing further details about the operations and practices of Lexington Blue.
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Additional Resources
- Kentucky.com
- Wikipedia: Kentucky
- LEX18
- Google Search: Lexington Blue roofing company
- WKYT
- Google Scholar: Lexington Blue
- MSN News
- Encyclopedia Britannica: roofing scams
- Fox 56 News
- Google News: Kentucky Attorney General Russell Coleman
