Trump-Promoted Freedom Fuel Stations Accused of Selling Unpaid Gas
A lawsuit filed by a Georgia-based fuel supplier, Mansfield Oil, claims that some of the gasoline sold through the Freedom Fuel Network, which received praise from President Donald Trump for its discounted prices, was never paid for.
The federal lawsuit, lodged on August 19th, states that businessman Syed Kazmi and his company, KRSM, acquired over 1.1 million gallons of fuel from a Pennsylvania terminal between May and July. Mansfield Oil alleges that the invoice for this fuel, totaling approximately $4 million and sent in July, remained unpaid.
The suit further contends that KRSM distributed a portion of this fuel to stations operating under the Freedom Fuel Network. However, the lawsuit does not identify the Freedom Fuel Network as a defendant or allege any wrongdoing on its part.
In early July, Freedom Fuel garnered national attention by offering gas at $3.47 per gallon at 25 of its stations in Pennsylvania and New Jersey. This price was significantly lower than prevailing rates in the area and was presented as a tribute to President Donald Trump's position as the 47th president.
Trump promoted this initiative as evidence that American consumers would soon see "record low prices" at the pump, even amidst rising fuel costs due to the U.S. conflict with Iran.
Trump posted on Truth Social on July 1st, stating, "On July 3rd, the Freedom Fuel Network will be lowering gas prices at 25 'FREEDOM FUEL' Stations across the Greater Philadelphia Area. This Retailer is taking the lead, and others should follow. They are doing this because they love the U.S.A."
Mansfield Oil's lawsuit suggests that the availability of unpaid fuel contributed to these discounted sales.
"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 asserts.
Court records indicate that on August 28th, the presiding judge partially granted Mansfield's request for a preliminary injunction, ordering the defendants to maintain a minimum bank account balance of $2.75 million.
The lawsuit does not specify the exact quantity of the $4 million worth of gasoline that was delivered to Freedom Fuel stations, nor does it detail any relationship between these stations and KRSM or Kazmi.
According to Politico, at least six Freedom Fuel locations in New Jersey are managed by Shamikh Kazmi, who is identified as the brother of defendant Syed Kazmi.
Syed Kazmi's legal representative, Mauro Tucci, stated that the dispute centers on discrepancies in invoices.
"KRSM disputes the allegations in this case, which is an accounting dispute over fuel invoices mis-priced by Mansfield Oil," he wrote in an email to CNBC. "We will not be commenting further on this pending litigation."
White House officials informed CNBC that the administration has had no interaction or dealings with the defendants. Freedom Fuel Network did not respond to CNBC's request for comment.
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SEO Description: <meta name="description" content="A lawsuit alleges that fuel supplied to Freedom Fuel Network gas stations, praised by Donald Trump for low prices, was never paid for by a distributor.">
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<h1>Trump-Promoted Freedom Fuel Stations Accused of Selling Unpaid Gas</h1>
A lawsuit has been filed by a Georgia-based fuel supplier, Mansfield Oil, alleging that some of the gasoline distributed through the Freedom Fuel Network, which President Donald Trump had lauded for offering significantly reduced prices, was never paid for by the distributor.
The federal complaint, submitted on August 19th, claims that businessman Syed Kazmi and his company, KRSM, procured over 1.1 million gallons of fuel from a Pennsylvania supply terminal between May and July. According to the suit, Mansfield Oil issued an invoice for this fuel in July, amounting to approximately $4 million, but the payment was not received.
The lawsuit further asserts that KRSM resold a portion of this fuel to various stations within the Freedom Fuel Network. Notably, the suit does not name the Freedom Fuel Network as a defendant, nor does it accuse the company of any wrongdoing.
Earlier in July, Freedom Fuel garnered national attention by selling gas at a price of $3.47 per gallon at 25 of its locations across Pennsylvania and New Jersey. This offer was framed as a tribute to President Donald Trump, who is the 47th president, and represented a substantial discount compared to local market prices.
Trump highlighted this initiative as evidence that American consumers would soon experience "record low prices" at the pump, despite increasing fuel costs influenced by the U.S. war with Iran.
On July 1st, Trump shared on Truth Social, "On July 3rd, the Freedom Fuel Network will be lowering gas prices at 25 'FREEDOM FUEL' Stations across the Greater Philadelphia Area. This Retailer is taking the lead, and others should follow. They are doing this because they love the U.S.A."
Mansfield Oil's lawsuit contends that the unpaid fuel facilitated at least some of these heavily discounted sales.
"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 states.
According to court records, on August 28th, the judge overseeing the case partially granted Mansfield's request for a preliminary injunction, directing the defendants to maintain a bank account balance of at least $2.75 million.
The lawsuit does not specify the exact amount of the $4 million worth of gas that was supplied to Freedom Fuel stations, nor does it indicate any direct relationship between these stations and KRSM or Kazmi.
Politico has reported that at least six Freedom Fuel locations in New Jersey are managed by Shamikh Kazmi, who is identified as the brother of the defendant, Syed Kazmi.
KRSM's legal representative, Mauro Tucci, described the situation as a dispute over invoice inaccuracies.
"KRSM disputes the allegations in this case, which is an accounting dispute over fuel invoices mis-priced by Mansfield Oil," he communicated via email to CNBC. "We will not be commenting further on this pending litigation."
White House officials told CNBC that the administration has had no contact or dealings with the involved parties. Freedom Fuel Network did not respond to CNBC's request for comment.
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