Freedom Fuel gas stations, promoted by the Trump administration for their low prices, allegedly sold fuel their supplier never received payment for, according to a newly filed lawsuit.
Mansfield Oil Company filed the suit on August 19 in U.S. District Court in Eastern Pennsylvania, targeting KRSM, a foreign corporation linked to the Freedom Fuel Network.
The lawsuit, spanning 179 pages, alleges that KRSM obtained more than 1.1 million gallons of fuel from Mansfield’s account between May 21 and July 7 of this year.
The fuel in question cost nearly $4 million, with Mansfield stating it is owed precisely $3,998,868.46 for the unpaid deliveries.
Despite Mansfield sending revised invoices to KRSM on July 17, the defendant had still not made payment as of August 17, more than three months after the fuel was obtained.
The agreement between the two companies required KRSM to pay invoices within 10 days of receiving them, but Mansfield’s bank reported on July 28 that KRSM had “refused” draft requests.
The lawsuit alleges KRSM was able to offer discounted fuel prices and “garner such publicity” because it “never paid” Mansfield for the product it resold.
President Donald Trump praised Freedom Fuel on July 1, saying the network’s stations were “taking the lead” on lowering gas prices and urging other retailers to follow their example.
White House spokesperson Taylor Rogers also endorsed the stations last month, saying Freedom Fuel “are doing their part to answer the President’s call to lower prices at the pump.”
KRSM is led by Syed Kazmi, who signed Mansfield’s commercial credit application in January 2022, agreeing that KRSM would be “responsible” for paying for any fuel purchased on credit.
The AP reported that 14 Freedom Fuel stations are owned by companies linked to Syed and Shamikh Kazmi, while NBC10 Responds found the broader Freedom Fuel Network operates under a web of owners structured through a Delaware LLC.
The lawsuit identifies KRSM, Inc. as a foreign corporation with a principal business address in Lawrenceville, New Jersey, while Mansfield operates out of Gainesville, Georgia.
The Hill has reached out to both the Freedom Fuel Network and the White House for comment on the allegations contained in the suit.
