The owner of several Freedom Fuel Network gas stations has been sued by a supplier who claims they are owed nearly $4 million, according to a lawsuit filed in the U.S. District Court of the Eastern District of Pennsylvania.
According to the lawsuit, which was filed by Mansfield Oil Company of Gainesville, Inc. on Aug. 19, a company that owns Freedom Fuel Network locations purchased around 1,112,594 gallons of gas from May 21 to July 7 of this year at a fuel supply transfer terminal in Delaware County.
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However, according to the lawsuit, Mansfield was never paid for the fuel and claims it is owed $3,998,868.46.
The lawsuit identifies the owner as KRSM, Inc., which is a foreign corporation with a principle business address in Lawrenceville, New Jersey, according to the lawsuit. KRSM's president, Syed Kazmi, was also listed as a codefendant in the lawsuit.
"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.
A judge has granted a preliminary injunction for Mansfield that ordered KRSM to keep at least $2,750,000 in a bank account as the case moves forward, according to court documents.
NBC10 has reached out to the lawyer for KRSM and Kazmi and is waiting to hear back.
Kazmi, according to reporting by the Associated Press, has been 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 that accused the brothers of stealing gas. The supplier alleged in court filings that it cut the brothers off after they refused to sign a new contract. But the Kazmis exploited a security lapse and gained access to the supplier’s fuel depot. Over a ten-day period in August 2021, tanker trucks absconded with more than 230,000 gallons of fuel, according to the supplier’s court filings. A judge ruled in the supplier’s favor, finding the brothers unlawfully took the gas
NBC10 Responds found that the entire Freedom Fuel Network has a web of owners under an LLC in Delaware, but the AP reported that 14 Freedom Fuel stations are owned by companies linked to Syed and Shamikh Kazmi.
A gas retailer is popping up across the Philadelphia region, offering notably lower prices than other gas stations. NBC10 Responds Valeria Aponte-Feliciano has the story.
Promoted by Trump
The Freedom Fuel Network has been promoted by President Donald Trump and the White House several times for its cheap gas and open support of the president.
“I am pleased to announce that a VERY smart Retailer, located throughout the Northeast, is stepping up,” Trump wrote about the company on his Truth Social platform on July 1. “America has never been stronger than it is now, and Gas Prices will soon be back to the Record Low Prices Americans enjoyed at the pump before our very successful ‘excursion’ in Iran.”
The White House followed up with a post on X a few days later that heralded the opening of the first Freedom Fuel station and produced a video showing patrons waving wads of cash and thanking Trump for reducing the prices outside a store festooned with American flags and a golden eagle logo.
On their website, Freedom Fuel Network sad that their company "answered President Trump’s call to action to lower prices at the pump. 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."
The company also said on its website that locations have seen "explosive growth" since their launch, with stations averaging sales increase of more than 50%.
