A fuel supplier has filed a $4 million lawsuit against a New Jersey distributor and its president, alleging they stole gasoline and sold it through the Trump‑backed Freedom Fuel Network. The complaint was filed Aug. 19 in the Eastern District of Pennsylvania.
Lawsuit Details
Mansfield Oil Company sued KRSM Inc. and President Syed Kazmi in the U.S. District Court for the Eastern District of Pennsylvania on Aug. 19, claiming the defendants obtained roughly 150 loads of fuel—about 1.1 million gallons worth $3.998 million—from its Twin Oaks terminal.
Mansfield alleges the fuel was later sold at reduced prices through the network’s stations.
Contractual Obligations
A 2022 credit application signed by Kazmi obligated KRSM to pay invoices within 10 days of receipt, according to the filing.
Mansfield said a data‑receiving error delayed invoice issuance until early July, after which it revised the invoices and sent them on July 17.
Dispute Over Payment
KRSM contends the disagreement centers on pricing, not payment, and says it objected to the invoices before the lawsuit was filed.
Kazmi declared in a Aug. 25 court filing that he “did not agree that the amounts Mansfield demanded were correct or owing.”
Evidence Presented
Mansfield’s attorney Urs Broderick Furrer said carrier records show several hundred thousand gallons were delivered to at least 10 Freedom Fuel Network locations between May 21 and July 7.
Furrer insisted the case is not an accounting dispute but a failure by KRSM to pay for approximately 1.1 million gallons of gasoline, noting KRSM resold the fuel despite its denial.
Court Rulings
Judge Gerald Austin McHugh vacated an earlier temporary restraining order that froze the defendants’ M&T Bank account but ordered the parties to maintain at least $2.75 million in the account while the case proceeds.
The judge also denied a full injunction, allowing the litigation to continue.
Freedom Fuel Network Context
The network attracted national attention after lowering pump prices in response to President Donald Trump’s call for cheaper gasoline, publishing a promotional video on July 7.
Freedom Fuel claims its 25 participating stations saw an average volume increase of more than 50 % after the price cuts, with some locations reporting growth over 100 %, according to company‑reported data.
Legal Claims and Damages
Mansfield seeks at least $3.998 million plus interest, costs and additional damages for breach of contract, unjust enrichment, price action, account stated and conversion.
The company is pursuing the full amount plus additional penalties for the alleged misconduct.
FOX Business has requested comment from KRSM’s counsel, Kazmi, and Freedom Fuel Network and has not received a response. The network has not yet responded to inquiries.
