A fuel supplier has filed a federal lawsuit alleging that the owner of several Freedom Fuel Network gas stations received nearly $4 million worth of gasoline without paying for it, potentially explaining prices that drew public praise from President Donald Trump.
Mansfield Oil Company of Gainesville, Inc. filed the suit on August 19 in the S. District Court for the Eastern District of Pennsylvania against KRSM, Inc. and its president, Syed Kazmi. According to the lawsuit, KRSM purchased approximately 1,112,594 gallons of fuel between May 21 and July 7 at a fuel supply transfer terminal in Delaware County. Mansfield claims it was never paid and is owed 46.
The lawsuit states that KRSM was able to sell fuel at unusually low prices and attract publicity "because it never paid Plaintiff for such fuel." The complaint alleges the fuel was obtained from a Sunoco terminal in Pennsylvania.
President Trump promoted the Freedom Fuel Network on Truth Social on July 1, and the White House posted a video on X heralding the opening of the first Freedom Fuel station. The company's website defended its pricing, stating: "We didn't hesitate; we took decisive action and lowered our prices to make filling up more affordable for hardworking families across the greater Philadelphia area."
Court documents show that a federal judge granted a preliminary injunction ordering KRSM to keep at least $2,750,000 in a bank account while the case proceeds.
The lawsuit identifies KRSM as a foreign corporation with its principal business address in Lawrenceville, New Jersey, and lists Kazmi as a codefendant.
According to reporting by the Associated Press, Kazmi was previously ordered to pay civil damages for unlawfully taking more than 200,000 gallons of fuel. In February, a federal judge in New Jersey ordered Syed Kazmi and his brother, Shamikh Kazmi, to pay over $600,000 to a fuel supplier. Court filings in that case alleged that the brothers exploited a security lapse at a fuel depot after being cut off by the supplier, and that over a ten-day period in August 2021, tanker trucks took more than 230,000 gallons of fuel.
NBC10 has reached out to the lawyer for KRSM and Kazmi and is awaiting a response.