WASHINGTON (dpa-AFX) - The Freedom Fuel Network, which gained national attention after President Donald Trump praised its discounted gasoline prices, is facing scrutiny following a lawsuit alleging that some of the fuel sold through its stations was never paid for.
Mansfield Oil of Gainesville, a Georgia-based fuel supplier, filed a federal lawsuit on Aug. 19 against businessman Syed Kazmi and his company, KRSM. The lawsuit alleges that KRSM obtained more than 1.1 million gallons of fuel from a Pennsylvania supply terminal between May and July but failed to pay an invoice of about $4 million.
According to the lawsuit, KRSM later sold some of the fuel to stations within the Freedom Fuel Network. The network itself is not named as a defendant and has not been accused of wrongdoing. The lawsuit also does not specify how much of the fuel went to Freedom Fuel stations or whether those stations had a business relationship with KRSM or Kazmi.
Freedom Fuel attracted attention in early July after selling gasoline for $3.47 per gallon at 25 stations across Pennsylvania and New Jersey. Trump promoted the discounts as an example of how consumers could see lower prices at the pump.
Mansfield alleges that the unpaid fuel allowed KRSM to offer gasoline at unusually low prices. On Aug. 28, a judge partially granted Mansfield's request for a preliminary injunction, ordering the defendants to maintain at least $2.75 million in a bank account.
KRSM disputes the allegations, with its legal representative Mauro Tucci describing the case as an accounting dispute involving allegedly mispriced fuel invoices. The White House said it had no contact or dealings with the defendants, while Freedom Fuel Network did not respond to a request for comment.
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