“Trump-promoted Freedom Fuel stations sold gas a distributor says went unpaid for”
What actually happened
Mansfield Oil, a Georgia fuel supplier, filed a federal suit on August 19 alleging 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 sent the invoice for the fuel in July, amounting to about $4 million, the bill went unpaid, and the suit further alleges that KRSM sold a portion of the fuel to stations in the Freedom Fuel Network. Those stations had been publicly praised by Trump in early July for selling gas at $3.47 a gallon. The suit does not name Freedom Fuel Network as a defendant or accuse the company of wrongdoing.
Key facts
- Fuel volume alleged unpaid: more than 1.1 million gallons obtained from a Pennsylvania supply terminal between May and July (independently reported as 1.12 million gallons, per the Philadelphia Inquirer).
- Amount owed: about $4 million, with a separate report putting the exact figure at $3,998,868.46.
- Trump's promotion: on July 1 Trump posted that Freedom Fuel would lower prices at 25 stations across the Greater Philadelphia area on July 3, calling it evidence that "record low prices" were coming despite rising fuel prices after the U.S. war with Iran.
- Court action: on Aug. 28, the judge overseeing the case partially granted Mansfield's request for a preliminary injunction and ordered the defendants to maintain a bank account balance of at least $2.75 million.
- KRSM's defense: its legal representative called the matter "an accounting dispute over fuel invoices mis-priced by Mansfield Oil".
- Unresolved detail: the suit does not specify how much of the $4 million worth of gas went to Freedom Fuel stations or indicate whether the stations have a relationship with KRSM or Kazmi, though at least six New Jersey locations are managed by the defendant's brother, per Politico.
What to watch for
- Whether Mansfield's suit is amended to name Freedom Fuel Network directly, which would sharpen the corporate liability question.
- How the "invoice mis-pricing" defense holds up once discovery on the actual delivery and payment records surfaces.
- Any White House distancing beyond the current line that officials have had no dealings with the defendants.
Lawsuit alleges Freedom Fuel gas stations touted by Trump are selling stolen fuel (Yahoo/AP)Some Freedom Fuel stations have been able to sell gas cheaply because some fuel wasn’t paid for, a lawsuit claims (Philadelphia Inquirer)Freedom Fuel owner didn’t pay for nearly $4 million in gas, lawsuit claims (NBC Philadelphia)
