President Donald Trump has repeatedly praised the Freedom Fuel Network for its low gas prices, but a federal lawsuit filed by Georgia-based petroleum distributor Mansfield Energy alleges that some of the fuel sold by the chain was stolen. The 179-page lawsuit claims that New Jersey-based KRSM and its president, Syed Kazmi, took more than 1.1 million gallons of gas (about $4 million worth) from a terminal between May and July before selling it to stations in the Freedom Fuel Network.
Key Takeaways
President Trump has praised the Freedom Fuel Network for its low gas prices, but a federal lawsuit alleges that some of the fuel sold was stolen. A Georgia-based distributor claims KRSM took $4 million worth of gas without paying and sold it to Freedom Fuel stations. The network has expanded to Detroit despite the ongoing legal battle.
- Federal lawsuit accuses KRSM of stealing $4 million in gas from Mansfield Energy
- Freedom Fuel Network, tied to Randy Brown, sold allegedly stolen fuel at discounted prices
- KRSM denies allegations, calling it an accounting dispute
- Freedom Fuel expands to Detroit with a new location offering the cheapest gas in Michigan
Source Claims Check
High Consensus| Claim | Status | Reason | |
|---|---|---|---|
| Gas Stolen From Terminal | Broad Agreement | $4 million worth of gas allegedly taken | |
| Freedom Fuel Network Expansion | Broad Agreement | New Detroit location opens at $3.47/gallon | |
| Krsm Account Balance | Broad Agreement | $2.75 million shortfall alleged |
The Freedom Fuel Network, tied to Baltimore Ravens senior special teams coach Randy Brown, sold the fuel for significantly less than its competitors to garner media attention. According to the lawsuit, KRSM was able to provide the fuel at such low prices because it never paid Mansfield Energy for it.
Lawyers representing KRSM have denied the allegations, calling it an 'accounting dispute over fuel invoices mis-priced' by Mansfield Oil. The White House has stated that it has had 'zero contact or dealings' with KRSM. Meanwhile, gas prices in August have continued to climb as peace talks between the U.S. and Iran have stalled.
The lawsuit comes nearly two months after Trump praised the Freedom Fuel Network on social media for lowering gas prices because they love the U.S.A.' The White House has also promoted the chain on social media, claiming that one station in Dresher, Pennsylvania, was lowering prices to $3.47 a gallon to honor the 47th president.
The Freedom Fuel Network has expanded with a new location in Detroit, offering regular unleaded gas at $3.47 per gallon, which is the cheapest in Michigan where the average price is $4.09 per gallon. This marks the first Freedom Fuel station outside of New Jersey and Pennsylvania, where the network has 29 locations. However, Freedom Fuel stations are no longer the cheapest stations in those states.
In a court filing this week, Mansfield Oil alleged that KRSM is violating a judge's Aug. 28 order by failing to maintain a balance of at least $2.75 million in an M&T Bank checking account as the suit over KRSM's purported failure to pay for the fuel plays out. The supplier also told a judge that the account is underfunded by about $2.25 million and now belongs to a different Kazmi-related entity named 'Universal,' raising concerns about funds being dissipated.
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