Latest news with #LexingtonBlue
Yahoo
2 days ago
- Business
- Yahoo
KY judge freezes Lexington Blue owner's assets. He insists he's being ‘vilified'
A Kentucky judge on Monday froze the assets of the owner of the failed roofing company Lexington Blue, days after the owner said he was being 'demonized and vilified.' Kentucky Attorney General Russell Coleman, who described the company as a Ponzi scheme, sued Lexington Blue and owner Brad Pagel on May 30. The suit came days after the Herald-Leader reported on homeowners who had paid thousands for roofing repairs that never happened before Pagel shuttered his company and disappeared. Fayette Circuit Court Judge Diane Minnifield granted a temporary restraining order against Pagel, freezing his assets, as well as those belonging to Lexington Blue, various shell companies and Pagel's business partner, Alex Southwell. 'We are constantly on guard against predatory organizations that try to take advantage of Kentuckians, and we will hold these bad actors accountable,' Coleman said in a statement. 'We're sending a strong message to scammers that they will face serious consequences when they operate within our commonwealth.' Pagel, who has not responded to numerous Herald-Leader requests for an interview, posted on his Facebook page, with a link to Frank Sinatra's 'My Way,' over the weekend that he has 'spent the last 10 years of my life caring for others in ways no one ever cared for me, save for a select few who saw me. 'Being Demonized and Vilified is my only worldly reward.' Pagel said he had 'I sacrificed everything at the alter (sic) of a stupid company, trying my best to be everything to everyone I saw in need. ... The sad part is that a lot of these people have been going out of their way to destroy my entire life, anything or anyone associated with me, and crippling my ability to make things right for the very same customers they had a hand in accumulating. 'Please stop all of this! It's causing me so much more harm than you can possibly imagine!' Former employees of Lexington Blue told the Herald-Leader that he ran the company as 'a cult' with intimidation and threats. He also went after a job applicant who posted online about his unusual encounter with Pagel during his interview. In a now-deleted post, Pagel seemed to say that a pending bankruptcy would resolve issues for hundreds of roofing clients who said that they paid thousands for work that was never done. 'I already gave everything I had to keep everyone afloat for as long as I could and my net worth WAS the company,' Pagel wrote. 'Bankruptcy became my only option. The courts will assign the backlog and LB (Lexington Blue) will be dissolved shortly after.' But Pagel has not filed for bankruptcy protection for himself or his businesses. Now, under the court's order, Coleman's office is allowed to enter Lexington Blue's offices at 287 Pasadena Drive to copy records, including any electronic files. Pagel and Lexington Blue are restrained from soliciting any new roofing business or requesting additional money from current customers. According to documents filed Friday by Coleman's office, 'Lexington Blue may have accepted deposits from between 300 and 429 consumers without delivering services. In 2024 alone, it accepted $4.8 million in consumer payments for 329 projects, the majority of which appear unfulfilled.' Coleman's office said the actions 'go beyond poor management — they appear more like a coordinated scheme to defraud. ... Additionally, the company's financial practices are more akin to a Ponzi scheme: new consumer deposits were used to refund or partially complete older contracts, while substantial funds were diverted for personal gain. 'As with any Ponzi scheme, this practice eventually led to the fraud's escalation and Lexington Blue's collapse.' Attorney General Coleman said in a news release he encourages anyone who needs assistance with Lexington Blue to contact his office at 888-432-9257. Lexington roofer, under investigation by Kentucky Attorney General, shuts down
Yahoo
3 days ago
- Business
- Yahoo
$4.8M for unfinished work: Attorney General pledges accountability for Lexington Blue roofing
LEXINGTON, Ky. (FOX 56) — A court order has mandated the roofing company, Lexington Blue, to immediately cease operations. An investigation into the company was opened by Attorney General Russell Coleman after learning that the company allegedly accepted $4.8 million for more than 300 projects, and the majority went unfinished. RELATED | Kentucky roofing company facing lawsuit after allegedly going out of business with unfinished paid projects lined up More than 70 of its clients have filed complaints, the attorney general's office said. According to the Lexington Blue website, the company had to close due to 'extraordinary and unforeseen challenges, including unrelenting internal disruptions and attempts to sabotage our operations, including, but not limited to, negative press and reviews.' 'We are constantly on guard against predatory organizations that try to take advantage of Kentuckians, and we will hold these bad actors accountable,' Coleman said. 'We're sending a strong message to scammers that they will face serious consequences when they operate within our Commonwealth.' $4.8M for unfinished work: Attorney General pledges accountability for Lexington Blue roofing Kentucky man killed in tornado remembered for his hard work, kind heart: 'He wanted to give back' Study shows Kentucky among the poorest states The court order will prevent Lexington Blue and its operators from transferring or liquidating assets and freeze the defendant's corporate and personal accounts. Coleman encourages anyone affected by the company to contact the office here or by calling (888)432-9257. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
28-04-2025
- Business
- Yahoo
Lexington roofer, under investigation by Kentucky Attorney General, shuts down
A multistate roofing company with headquarters in Lexington that's under investigation by the Kentucky Attorney General's office, abruptly went out of business over the weekend, leaving customers high but not necessarily dry. Lexington Blue, with offices in Lexington, Louisville and Cincinnati, sent customers an email saying it was closing its doors as of April 26 and has handed over all existing contracts to another company, Skyline GC. 'We have formally transferred our backlog of outstanding projects and warranties to Skyline GC LLC, a local roofing company that shares Lexington Blue's values of excellence, integrity, and community care,' according to the email to customers. 'If you have a pending project or warranty, you can expect direct communication from Skyline GC within the next 30 days.' Lexington Blue said it has defaulted 'on all credit lines and loans.' The news is not settling well with some homeowners. Tim Buckingham, contacted the Herald-Leader to say he had filed an insurance claim in February 2024 with Lexington Blue and paid 'a significant amount of money ... and still no roof,' the Lexington homeowner emailed. He hadn't heard from the company since September until the going-out-of-business email arrived. An office manager in Louisville told WDRB-TV, which has reported on issues involving Lexington Blue in Jefferson County, she estimates more than 80 customers in Louisville are waiting on roofing work there. No phone number or contact information was immediately available for Skyline GC. The Kentucky Secretary of State's office lists the organizer as Cesar Gutierrez Arreaga and says the office is on Chantilly Street in Lexington. Lexington Blue was founded in 2015 by Bradly Pagel Jr. of Lexington. A Herald-Leader call on April 28 to Lexington Blue's office ended in a voicemail box that is full. Lexington Blue is under investigation by the Kentucky Attorney General's office and is facing multiple lawsuits in Fayette Circuit Court. Kentucky Attorney General Russell Coleman's office served Lexington Blue with a subpoena and Civil Investigative Demand in March. He demanded business records for Lexington Blue Lexington, Lexington Blue Cincinnati and Lexington Blue University from Jan. 1, 2023, to March 1, 2025. The Attorney General's office asked for all contracts, payments, communications, work documents, building permits, licenses and list of sub-contractors as well as bank account information, refund information and marketing. Coleman's office requested the documents be turned over within 20 days, by March 25. The business attempted to fend off this request by asking Franklin Circuit Court Judge Philip Shepherd to dismiss the demand, which it called overly broad in the court filing. Or, failing that, to ask Coleman's office to establish reasonable justification for the demand, modify it and/or extend the return date. No ruling has been made in that case. Coleman's office did not immediately respond to a request for comment Monday. But Coleman's demand letter requests names of customers Lexington Blue or affiliated entities entered into an agreement with for home construction, repair or reconstruction services over the past two years. Coleman's office asked the company to identified any contracts where Lexington Blue 'failed to perform its obligations within the initial time period called for the Agreement; and/or Lexington Blue ... failed to completely perform its obligations' and why. The letter also asks if Lexington Blue 'obtained building permits and/or licenses from local municipalities and counties before commencing work.' According to the Better Business Bureau in Lexington, the company had a pattern of complaints involving communication issues, services delays and refund issues. Lexington Blue was not accredited by the BBB and various review websites offer harsh critiques. There are several cases pending in Fayette Circuit Court, including two that appear to involve roofing repairs that were not made or completed and three involving suppliers. One homeowner, James Greathouse on Gulfstream Drive, sued in February 2024, alleging that Lexington Blue agreed to fix the roof of his home and shed, damaged in a March 2023 wind and hailstorm. Despite paying more than half of the nearly $7,500 cost up front, Lexington Blue never started the work, according to the lawsuit. Another couple, Stuart and Brenda Goldsborough on Old Richmond Road, hired Lexington Blue in October 2024 to replace their roof, which had a leak and was under temporary tarps at the time, and paid a deposit of more than $5,500. After Lexington Blue failed to do any work, the homeowners had to cancel and find another contractor before winter, according to a lawsuit filed in March 2025. Meanwhile, Lexington Blue had contacted their insurance company and not only asked for the full cost of the new roof up front but had told the insurer the work had been completed by Lexington Blue, when it had not, according to the complaint. One supplier from Florida, Gulfside Supply, claims Lexington Blue owes more than $70,000 on a line of credit for roofing and lumber provided. Another supplier, Corken Steel Products of Florence, alleges Lexington Blue and Pagel owe more than $49,000 as of January 2025 for goods. Another Fayette Circuit Court lawsuit filed against Lexington Blue in October 2024 alleges they had not paid their computer and IT services provided and owed almost $7,000. Another case involves a van that Lexington Blue sold that apparently did not have a clear title because there was a lien on it.
