Trump praised Freedom Fuel gas stations for their patriotic low prices. But a lawsuit alleges that they stole $4M in fuel

Politico reports that a lawsuit filed this month alleges that some stations in the Freedom Fuel Network sold gas so cheaply because about $4 million worth of the fuel was stolen. The stations, located around Philadelphia and New Jersey, had drawn attention for undercutting rival retailers. President Donald Trump posted praise for their discounted pump prices in the run-up to the July Fourth holiday, writing, “They are doing this because they love the U.S.A.”

The White House later posted a video of drivers filling up at one of the stations and thanking Trump for the low prices. At the time, the stations listed gas at $3.47 a gallon in honor of the 47th president, though the prices have since crept up. KRSM, the business named in the suit, denies the accusation.

Neither the White House nor the network’s owners explained exactly how the stations sold fuel far cheaper than competitors. The White House told reporters that Freedom Fuel was a private company lowering its margins for patriotic reasons and declined to name the people behind it. Those people turned out to be a former New Jersey mayor and an NFL special teams coach for the Baltimore Ravens, who is a GOP donor, according to the report.

Lawsuit claims KRSM took more than 1 million gallons without paying

Georgia-based fuel supplier Mansfield Oil Co. filed a complaint on Aug. 19 in the U.S. District Court for the Eastern District of Pennsylvania. The complaint alleges that Syed Kazmi’s company KRSM acquired over 1 million gallons of fuel from a Sunoco terminal in Twin Oaks valued at around $4 million and never paid for it. The Freedom Fuel Network now claims to operate 29 locations.

The lawsuit alleges that KRSM sold some of that fuel to stations within the Freedom Fuel Network. The complaint states, “KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid Plaintiffs for such fuel.” 

Politico’s reporting also linked six of the stations through business records to New Jersey fuel businessperson Shamikh Kazmi, who, along with his brother Syed Kazmi, has been involved in several lawsuits.

KRSM disputed the allegations in an emailed statement. The company called the case “an accounting dispute over fuel invoices misplaced by Mansfield Oil” and added, “We will not be commenting further on this pending litigation.” A message sent to Freedom Fuel through its website was not returned. Shamikh Kazmi did not immediately respond to a request for comment.

Urs Broderick Furrer, a lawyer for Mansfield, said Syed Kazmi is a principal owner and president of KRSM, Inc. Furrer stated that KRSM failed to pay for fuel lifted off Mansfield’s account and that the matter is not an accounting dispute. He said the fuel was delivered to at least 10 of the Freedom Fuel Network locations listed on the network’s website. Trump has separately told the Justice Department to look into why gas prices lag oil costs.

A White House official said the Administration has had zero contact or dealings with the defendant KRSM Inc or Sayed Kazmi. A source familiar with the Freedom Fuel business said KRSM Inc and Sayed Kazmi are not associated with the Freedom Fuel Network in any capacity. 

The Freedom Fuel Network’s website said that despite “misinformation and baseless speculation … Freedom Fuel Network is proudly lowering prices to benefit our community and strengthen our local economy.”

Companies associated with the Kazmis have previously been subject to other lawsuits alleging fraudulent activity and theft. A federal judge entered judgment in February in favor of a fuel distributor that alleged Shamikh Kazmi’s company took roughly $667,000 worth of fuel over 10 days in August 2021 without fully paying for it. 

Shamikh Kazmi denied the allegations, but the court entered a default judgment after the judge described the defendants and their lawyers’ “serial flouting of Court orders and the Federal Rules of Civil Procedure.”

In another suit, 7-Eleven accused Syed Kazmi’s KRSM in 2022 of stealing tens of thousands of dollars’ worth of cigarettes, and the judge found in favor of the plaintiff in 2024. KRSM disputed 7-Eleven’s allegations of breach of contract and claimed 7-Eleven was the one that breached the contract. 

The current lawsuit also alleges that KRSM is not authorized to conduct business in Pennsylvania or New Jersey at all. New Jersey’s Division of Consumer Affairs declined to comment. The Pennsylvania attorney general’s office did not respond to a request for comment. Trump has also given comments on last month’s inflation rise after reviewing U.S. price figures.