How much does Lexington Blue owe for ripping off homeowners? It’s in the millions
AI-generated summary reviewed by our newsroom.
- Judge orders $8,544,360.31 restitution after default judgment against Lexington Blue.
- Attorney general says more than 332 consumers reported unpaid deposits, unfinished roofs.
- Company and Pagels in Chapter 7; about $60k–$70k frozen in Pagels' accounts.
After closing abruptly 10 months ago, failed Lexington Blue roofing company has been ordered to pay customers back millions of dollars, as well as damages.
Fayette Circuit Judge Diane Minnifield on Friday ordered restitution of $8.54 million after a default judgment against the company in a civil lawsuit brought by Kentucky Attorney General Russell Coleman’s office last May.
In a statement, a spokesperson for Coleman’s office said: “We remain committed to holding these bad actors accountable while sending a message to scammers Kentucky is not the place to do business.”
On Feb. 2, Minnifield granted the judgment in the case, finding that Lexington Blue, which was owned and operated by Brad Pagel, had scammed more than 300 victims out of millions, accepting $4.8 million in payments for more than 300 projects in 2024 alone, most of which were never fulfilled.
Thompson told the Minnifield the case had been “heartbreaking.” The attorney general’s office spoke with hundreds of homeowners who cooperated with the investigation, he said.
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But it isn’t clear how much the hundreds of ripped-off customers will actually get.
Minnifield, in her finding, said, “I think that’s what everyone really wants to know, is when are they going to get the money.”
The attorney general’s office so far only has about $60,000-$70,000, frozen in bank accounts owned by Brad and Courtney Pagel, said Gary W. Thompson, who handled the case for Coleman’s office.
In a filing to the court, the attorney general’s office said “actual enforcement must take place through the bankruptcy court.”
The company, which closed abruptly in April, is in Chapter 7 bankruptcy, and Pagel and his wife, Courtney, are in Chapter 7 personal bankruptcy. Both the Pagels and the company claim to have no assets.
The attorney general also has ongoing civil cases against the Pagels.
Coleman announced the victory in the Lexington Blue lawsuit in a news release Tuesday, saying, “Finally, Lexington Blue’s predatory business practices have come to an end. So many Kentuckians have been taken advantage of by this company, and I’m proud our Office was able to step in to help,” said Attorney General Coleman. “Scammers need to know: Kentucky is not the place to do business.”
Coleman’s office moved for default judgment Jan. 27 after Lexington Blue and owner Brad Pagel failed to plead or defend against the state’s complaint.
To date, more than 332 Kentucky consumers have filed reports with the attorney general’s Office of Consumer Protection, with consistent complaints of customers paying substantial deposits for roof construction projects that never occurred, according to the news release.
According to a Herald-Leader investigation, customers frequently were pressured into contracts for new roofs and signing over insurance deposits that were meant to cover materials. The roof repairs were never done, and customers were unable to get their deposits back. Former employees of Lexington Blue said Pagel ran the company like a cult of fraud and intimidation.
According to the judge’s judgment, Lexington Blue’s various companies, “unjustly enriched themselves through their unlawful conduct.”
Lexington Blue was ordered to pay restitution to consumers harmed, disgorge all funds received through unlawful conduct, pay civil penalties of up to $2,000 per violation or up to $10,000 per violation if the consumer was 60 or older. Lexington Blue also must pay costs and expenses of the litigation and investigation.
An though it’s unclear what, if any, money former customers may actually see, but according to the news release, the judgment is “paving the way for the Office of the Attorney General to begin compensation efforts.”
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Lexington homeowner Lindsey Truong said Friday she was happy with the ruling, even though she knows it will be a while, at least, before she receives any of the nearly $13,000 she is owed by Lexington Blue.
“I’m just looking forward to justice. ... I want justice for everybody involved,” Truong said. She started a Facebook group called Lexington Blue Lawsuit so fellow homeowners and former company employees could communicate.
Asked if she wanted to say anything to Pagel, Truong said: “I just hope he takes accountability for everything he has done to so many people.”
Two former Lexington Blue employees who attended the hearing said even though they also are owed money by Lexington Blue, they are hoping the customers get paid.
“They are more affected,” said Emily Rees, who worked at Lexington Blue. “I want the employees to see justice, as well.”
This story was originally published February 13, 2026 at 4:33 PM.
