Kevin Scott Horton, 55, of Saratoga Springs, Utah, is facing federal charges in a brazen $5,805,504 mail fraud scheme targeting Melissa’s World Variety Produce Inc., a Vernon-based organic produce distributor. Horton was arraigned in Riverside federal court on seven counts of mail fraud, pleading not guilty. A trial is set for March 28 in United States District Court in Los Angeles.
According to a grand jury indictment, Horton ran a shell company called Creative Network Solutions (CNS), which he created in February 2000 at the direction of co-conspirator Tony Anhtuan Rawlings, 56, of Garden Grove. Rawlings served as the management information systems director at Melissa’s and used his position to approve fake invoices submitted by Horton for services CNS never provided.
The scheme unfolded over 18 years—from February 2000 to April 2018—and relied on deception at every level. Horton allegedly produced one or two phony invoices per month, billing Melissa’s for IT and information systems services that were entirely fabricated. Rawlings then signed off on the invoices and passed them to a senior executive who authorized payment, believing the work had been performed.
In reality, Horton had no computer expertise and CNS operated as a paper-only entity, offering no services to Melissa’s or any other business. Payments were mailed via the U.S. Postal Service to CNS, and Horton deposited the checks into a bank account under his control. He then funneled portions of the stolen funds back to Rawlings through checks sent by mail to an Irvine address tied to Rawlings.
Federal prosecutors allege the total loss to Melissa’s amounted to $5,805,504. Each count of mail fraud carries a statutory maximum sentence of 20 years in federal prison if Horton is convicted on all charges. The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office.
Rawlings pleaded guilty to one count of mail fraud in August 2022 and is scheduled for sentencing on June 1. The indictment serves as an allegation, and federal authorities remind the public that all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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