Brad Pagel said he wasn’t running Lexington Blue. His texts say otherwise
AI-generated summary reviewed by our newsroom.
- Texts contradict Pagel’s sworn claims of limited involvement in operations.
- Pagel directed financial planning and spending while business neared collapse.
- Attorney General’s office cited texts in bankruptcy seeking restitution for creditors.
Lexington Blue owner Brad Pagel’s texts to employees appear to contradict claims he made under oath about his involvement in day-to-day operations during the final years of the failed roofing company.
Pagel testified during an Aug. 12 creditors meeting he was largely hands-off as the company circled the drain before eventually closing and declaring bankruptcy, leaving hundreds of angry customers saying they’d been scammed.
But new text messages submitted this week by Kentucky’s attorney general show Pagel deeply involved in the company’s financial planning, including the balance of bank accounts and how many contracts were signed each day.
The texts also show Pagel was involved in decisions including employee terminations and customer complaints, and he contacted employees about office minutiae such as cleaning services and turning off water in the office after 5 p.m.
Lexington Blue abruptly closed in April after a decade in business in Lexington, with offices in Louisville and Cincinnati at one time. Many homeowners told the Herald-Leader they’d paid thousands of dollars in insurance deposits for roof work that was never done, and employees said Pagel ran the company as “cult” of fraud and intimidation.
Kentucky’s attorney general has filed a consumer protection civil suit, and several homeowners have filed lawsuits. Lexington Blue filed for bankruptcy protection in June.
The Kentucky attorney general froze the company and Pagel’s assets in June. Pagel’s attorney has filed motions asking for the cases to be dismissed against Brad and Courtney Pagel.
In the meantime, the bankruptcy petition has been converted to a liquidation case. An independent trustee will be appointed to attempt to recover as many assets as possible to provide restitution for all creditors including the homeowners.
At the Aug. 12 meeting, Pagel told homeowners he is broke, living on a credit card and money from his wife’s grandparents.
But the texts submitted this week by Kentucky Attorney General Russell Coleman’s office suggest otherwise.
What Brad Pagel texted his employees
The 173 pages of texts between Pagel, general manager Alex Southwell and director of finance Nick Conway appear to cover the last six months of Lexington Blue operations and pull the curtain back on how Pagel operated the business.
In a text from Pagel to Conway, in October 2024, Pagel said: “We are going to have our daily financial discussion at 9am for 30 minutes, M-F about the deposits from the day before and what we will be doing with the money.”
In a response, Conway said: “We need $5M to pay off supplier debt, maintain our current installs on time, install everything in the backlog and maintain operations through the foreseeable future.”
Pagel also ordered a special escrow account to be set up to receive 10% of all incoming revenue for “business prosperity,” according to the texts. It is unclear what that fund was used for, but in other texts, Pagel said he bought Bitcoin and stocks, possibly through a Charles Schwab account the company funded for him with a $20,000 check.
Pagel also shared his own financial advice, telling Conway in November 2024 to buy houses for Airbnbs and put money into cryptocurrency.
“I’m telling you guys. Buy a few small houses and pimp them out to Airbnb, have tenants pay the mortgage, take the proceeds and buy crypto. ... I’m buying 3 first of the year,” Pagel said. “I’m still worth about 2.5M. ... I may not have the cash flow, but I’m secure.”
Meanwhile, Pagel complained repeatedly about not receiving his paycheck deposit or car payments on time, according to the texts.
Pagel in November 2024 harangued Conway about the truck, an $80,000 Ford Raptor, and car, a $50,000 Hyundai Genesis, that Pagel and his wife were driving, texting, “Are you not making the truck and car payments?” He also complained that late payments were hurting his personal credit rating.
What Pagel said about legal issues
In other texts, Pagel urged Conway to try to get out of fines involving issues with the “labor board,” saying, “Appeal to her nurturing side when you see her next,” according to court records. He further urged Conway to sleep with the investigator, using a vulgar phrase.)
Pagel was also aware of other legal issues. In December, after Conway texted that someone from the Fayette County Sheriff’s office had attempted to serve documents, Pagel texted back, “Who cares?”
And in February 2025, Pagel texted that the company was not to give any more refunds to unhappy customers. “NO MORE (expletive deleted) REFUNDS!” and “We are DONE with refunds.”
Homeowners told the Herald-Leader they had waited months, sometimes more than a year, in vain for work to begin after paying thousands of dollars in deposits. Many sought refunds unsuccessfully, including one who was promised her money back right before the business closed.
Pagel also apparently was looking to shifting the structure of the company to add a board and further insulate it from lawsuits that were beginning to pour in.
“We need to structure this business and its growth in such a way as to make it a legally untouchable phantom and suit proof, wielding great legal authority to aggressively pursue anyone at any time, for most anything,” Pagel texted to Conway. “Make all this (expletive) happen, Nick.”
He ordered Conway in November to prepare an extensive weekly PowerPoint of financial data and ordered Southwell to do the same, focusing on sales and production.
He also apparently ordered another employee to build websites for his side projects including Lexington Blue University and WideAway Consulting, berating Conway for a lack of results, texting, “Where’s my LBU site? Where’s my WideAwake site ... Step her out of her comfort zone and make her produce (expletive) that makes money!”
Even as Lexington Blue began bouncing payroll checks in January 2025, Pagel was texting demands: “I need $1,000 deposited into my account today.”
