Fuel sold to Trump-promoted Freedom Fuel stations is part of nearly $4M dispute, lawsuit says
Mansfield Oil alleges a New Jersey distributor did not pay what it says was due for more than 1.1 million gallons of fuel. KRSM disputes the bill as the case escalates in federal court.
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Some of the fuel at the center of a nearly $4 million payment dispute involving a New Jersey fuel distributor was sold to stations in the Freedom Fuel Network, according to a federal lawsuit. President Donald Trump promoted the network this summer.
Mansfield Oil Company alleges KRSM Inc. obtained more than 1.1 million gallons of fuel on credit from a Pennsylvania terminal between May and July and did not pay what Mansfield says was due. KRSM acknowledges receiving the fuel but disputes Mansfield’s bill, arguing delayed invoicing, pricing problems and accounting errors make the amount inaccurate.
The dispute has since escalated in federal court. A judge ordered KRSM and its president, Syed Kazmi, to maintain at least $2.75 million in a bank account. They appealed the order Sept. 1, and Mansfield is now asking the judge to hold them in contempt, alleging the account contained less than $600,000.
What the companies are fighting over
Mansfield says KRSM obtained about 150 loads totaling 1,124,594 gallons from its account at the Twin Oaks terminal between May 21 and July 7. The companies had an existing credit relationship, and Mansfield alleges KRSM owes approximately $3.99 million for the fuel.
Mansfield acknowledges a data-receiving error delayed its invoices and says they were later adjusted following discussions with KRSM over pricing discrepancies.
KRSM says the dispute is over what it should have been charged, not whether it received the fuel. In a written objection sent before Mansfield filed the lawsuit, KRSM said it did not dispute receiving the fuel or the number of gallons but disputed the price, citing conflicting totals and alleged billing errors.
How Freedom Fuel is connected
Mansfield’s complaint also alleges KRSM sold some of the fuel to stations participating in the Freedom Fuel Network. The complaint does not specify how much of the approximately 1.1 million gallons went to those stations.
Trump promoted Freedom Fuel in a July 1 Truth Social post, announcing that 25 stations in the greater Philadelphia area would lower gas prices ahead of the Fourth of July. He praised the retailer and said others should follow its lead. The White House later promoted the network in a video published July 7.
The fight moves to court
Mansfield sought restrictions on KRSM’s assets after filing the lawsuit Aug. 19. On Aug. 28, U.S. District Judge Gerald McHugh ordered KRSM and Kazmi to maintain at least $2.75 million in an M&T Bank account and prohibited withdrawals, transfers or drafts when the balance was at or below that amount.
The order did not resolve Mansfield’s underlying claim that KRSM owes it nearly $4 million.
KRSM and Kazmi appealed the order Sept. 1. Mansfield then asked McHugh to hold them in contempt, alleging M&T Bank had confirmed the account contained $589,513.68.
Mansfield argues the order required KRSM and Kazmi to keep at least $2.75 million in the account. Attorneys for KRSM and Kazmi say it does not require them to add money but instead prohibits withdrawals when the balance is at or below that amount. They say they are complying with that restriction.
Mansfield filed another motion Thursday seeking permission to immediately obtain records tracing where the fuel was delivered, whether customers paid for it and where the proceeds went. The company also alleges it learned the M&T account is now owned by another Kazmi-related entity rather than KRSM.
As of Thursday afternoon, McHugh had not ruled on Mansfield’s contempt request or its request for immediate discovery. The underlying dispute over whether KRSM owes Mansfield nearly $4 million also remains unresolved.
