Supplier sues Freedom Fuel owner for nearly $4 million in unpaid gasoline

A Pennsylvania federal court has received a lawsuit from Mansfield Oil Company of Gainesville, Inc., claiming that KRSM, Inc., which operates Freedom Fuel Network stations, owes nearly $4 million for gasoline purchased between May 21 and July 7. The suit states that KRSM bought roughly 1,112,594 gallons of fuel at a Delaware County transfer terminal but did not make any payments, resulting in an alleged debt of $3,998,868.46.

The complaint identifies KRSM as a foreign corporation based in Lawrenceville, New Jersey, and lists its president, Syed Kazmi, as a co-defendant. A judge has issued a preliminary injunction requiring KRSM to retain at least $2.75 million in a bank account while the case proceeds.

"KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid Plaintiff for such fuel," the filing reads.

Kazmi and his brother, Shamikh Kazmi, have previously faced civil judgments related to fuel disputes. In February, a New Jersey federal judge ordered the brothers to pay more than $600,000 after a supplier alleged they unlawfully took over 200,000 gallons of gasoline from a depot.

Investigations indicate that the Freedom Fuel Network is owned through a complex structure of Delaware-registered LLCs, with 14 stations linked to entities associated with the Kazmi brothers.

The brand has received public endorsements from President Donald Trump, who posted supportive comments on social media, and the White House, which highlighted the chain’s low-price gasoline in a separate online message.