Trump-Promoted Freedom Fuel Stations Sued Over Unpaid Gas Lawsuit

The Freedom Fuel Network, a regional chain of gas stations primarily operating in the Philadelphia area, faces scrutiny after a Georgia-based supplier filed a federal lawsuit alleging that millions of dollars in fuel went unpaid, according to court records reported by CNBC.

Mansfield Oil of Gainesville filed the federal lawsuit on Aug. 19, stating that businessman Syed Kazmi and his company, KRSM, obtained more than 1.1 million gallons of fuel from a Pennsylvania supply terminal between May and July. When Mansfield issued an invoice for approximately $4 million in July, the bill went unpaid, according to the court filings. The lawsuit alleges that KRSM sold a portion of that fuel to stations within the Freedom Fuel Network. The lawsuit does not name Freedom Fuel Network as a defendant or accuse the company of wrongdoing.

The controversy follows national attention gained in July, when the Freedom Fuel Network offered steeply discounted fuel at 25 stations across Pennsylvania and New Jersey. The stations sold gas at $3.47 a gallon to honor President Donald Trump’s status as the 47th president. At the time, President Trump praised the move on Truth Social, writing that the retailer was taking the lead while fuel prices rose following the U.S. war with Iran, according to CNBC.

Mansfield Oil Lawsuit and Court Injunction

Mansfield Oil’s lawsuit contends that the unpaid fuel directly enabled the heavily discounted prices offered at the pump. KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid Plaintiff for such fuel, the lawsuit stated, as cited by CNBC.

Legal proceedings advanced on Aug. 28, when the judge overseeing the case partially granted Mansfield’s request for a preliminary injunction. Court records show the order requires the defendants to maintain a bank account balance of at least $2.75 million. The lawsuit does not specify the exact dollar amount of the $4 million in fuel that reached Freedom Fuel stations, nor does it detail the specific business relationship between the stations and KRSM or Kazmi. According to Politico, at least six Freedom Fuel locations in New Jersey are managed by Shamikh Kazmi, the brother of defendant Syed Kazmi.

Response From Defense and Officials

Mauro Tucci, legal representative for KRSM, disputed the claims in an email to CNBC, characterizing the litigation as a financial disagreement. KRSM disputes the allegations in this case, which is an accounting dispute over fuel invoices mis-priced by Mansfield Oil, Tucci said, adding that the defense would not comment further on pending litigation.

White House officials stated to CNBC that the administration has had no contact or dealings with the defendants named in the lawsuit. Representatives for the Freedom Fuel Network did not respond to requests for comment from CNBC regarding the legal action.