Mansfield Oil sues KRSM and its president over unpaid fuel at Freedom Fuel stations
Mansfield Oil Company filed a lawsuit in federal court accusing KRSM Inc. and its president Syed Kazmi of failing to pay for roughly 1.1 million gallons of gasoline sold through Freedom Fuel Network stations.
Mansfield Oil Company brought a suit in the Eastern District of Pennsylvania against KRSM Inc. and its president Syed Kazmi, alleging the distributor did not pay for about 150 loads of gasoline taken from Mansfield's Twin Oaks terminal from May 21 to July 7, valued at $3,998,868.46. The complaint states KRSM resold a portion of the fuel through stations in the Trump-promoted Freedom Fuel Network, allegedly offering low prices because it had not been reimbursed.
Mansfield says an invoicing error delayed billing until early July, after which it revised the invoices and sent them on July 17. KRSM contends the dispute is over the price charged and that it objected to the bills before the lawsuit. Judge Gerald Austin McHugh vacated an earlier restraining order on KRSM's M&T Bank account but ordered the defendants to maintain a $2.75 million balance pending litigation. The Freedom Fuel Network has highlighted its price cuts and reported increased traffic at participating stations, though those figures have not been independently verified.
Why it matters
The case highlights financial risks for fuel suppliers dealing with distributors tied to high-profile pricing promotions.
In this story
