Federal lawsuit alleges fuel distributor failed to pay for millions of gallons sold to Freedom Fuel stations
A Georgia fuel supplier claims it was not paid for about $4 million worth of gasoline that was later sold at discounted rates by the Freedom Fuel network, prompting a federal court to order a partial injunction.
A federal lawsuit filed on Aug. 19 by Mansfield Oil of Gainesville alleges that fuel distributor KRSM, owned by businessman Syed Kazmi, obtained more than 1.1 million gallons of gasoline from a Pennsylvania terminal between May and July and did not pay the roughly $4 million invoice. The complaint says KRSM subsequently sold part of the fuel to stations in the Freedom Fuel Network, which had advertised discounted prices at 25 locations in Pennsylvania and New Jersey in early July.
The suit does not name Freedom Fuel as a defendant and does not detail how much of the unpaid fuel was supplied to its stations. A judge on Aug. 28 granted a preliminary injunction requiring the defendants to keep a bank account balance of at least $2.75 million.
KRSM’s attorney, Mauro Tucci, described the case as an “accounting dispute over fuel invoices mis-priced by Mansfield Oil” and said the company would not comment further. White House officials said the administration had no contact with the parties, and Freedom Fuel did not respond to requests for comment.