Lexington Blue Roofing Faces Fraud Allegations

Lexington

Lexington Blue Roofing, a roofing contractor based in Kentucky, is facing allegations of extensive fraud that has reportedly left hundreds of homeowners without their promised roofing services. Customers and former employees of the company claim that owner Brad Pagel engaged in widespread insurance fraud, which included stealing deposits while failing to deliver on repair services.

Eight homeowners and nine former employees have provided similar accusations against Lexington Blue, alleging that sales representatives promised free roof inspections and assistance with insurance claims, yet rarely returned to complete the work after collecting payments. Following multiple complaints regarding the company’s practices, an investigation has been initiated by Kentucky’s Attorney General’s office, which identified a “consistent pattern of unlawful conduct” associated with Lexington Blue.

On April 26, 2025, Lexington Blue abruptly ceased operations after ten years in business. Although no civil or criminal charges have been filed against the company to date, a potential class-action lawsuit was filed in Jefferson County just days later on April 30, 2025. Homeowners affected by the company’s sudden closure are expressing deep concern over the recovery of their deposits, as the business is now defunct.

Brad Pagel, the company’s owner, has yet to respond to repeated requests for comment and has not filed for bankruptcy protection. Several former employees claim that the roofing company had a systematic practice of delaying roof installations to avoid paying commissions to sales representatives. Reports suggest that out of many roofs sold by staff, only a limited number were actually installed.

Unethical Business Practices

Former workers indicated that they were instructed to manipulate customers and sales strategies to generate revenue, further underscoring allegations of unethical conduct within the organization. Some complaints allege that employees were told to intentionally damage existing roofs to create new sales opportunities.

Legal Troubles and Complaints

At least three vendors have filed lawsuits against Lexington Blue for non-payment, with total claims exceeding $160,000. Many homeowners, including individuals like Kenyon Matthews and Brenda Goldsborough, have reported losing substantial deposits without receiving any services in return. The Better Business Bureau has received a significant number of complaints against Lexington Blue, and the company’s accreditation status is currently under review.

Concerned homeowners have formed a Facebook group named “Lexington Blue Lawsuit” to share experiences and updates regarding the situation. In a report from the former office manager, Michelle Davidson, internal issues within the company were highlighted, including unpaid bills and repossessed vehicles. Davidson further noted that staff were directed to create fake online profiles to post misleading positive reviews about the company in order to attract customers.

Community Impact

Homeowners across the region expressed feelings of devastation and uncertainty in the wake of Lexington Blue’s closure. Many are left grappling with the financial impact and the status of their unfinished roofing projects, which has left them vulnerable. As investigations proceed, the community remains hopeful for a resolution that will allow them to recover their losses and gain closure.

With ongoing investigations and the emergence of a potential class-action lawsuit, the future remains uncertain for both the affected homeowners and the business practices of Lexington Blue Roofing.