US govt calls 7 witnesses in Ada’s ongoing trial

The U.S. government called yesterday to the stand seven witnesses in the ongoing jury trial in federal court of Leyda I. Ada, who is accused of conspiring with her husband to perpetrate a health care fraud exceeding $1.7 million.

Clarice Mendoza, a former employee of First Hawaiian Bank, will resume her testimony today, Tuesday, at 10:30am.

Defense counsel Mark Hanson completed his extensive cross-examination of Mendoza yesterday afternoon. The prosecution will question Mendoza when trial resumes today.

The prosecution started calling witnesses soon after assistant U.S. attorney Garth Backe and defense counsel Mark Hanson gave their opening statements.

Shown with bank documents, Mendoza said Ada opened a business savings account at FHB in the name of “Leyda I. Ada dba, MMS, CNMI” in the amount of $9,661.50 on Oct. 1, 2014.

The then-FHB employee said that Ada provided her, among other documents, a sole proprietorship business license.

Mendoza said Melvin, the husband of Ada, was just a signatory in Ada’s account.

Defense attorney Mark Hanson repeatedly asked Mendoza if she remembers whether Ada or both couple were present in the bank when the account was opened.

The witness said she’s sure they were there.

Mendoza also stated that, based on the signature card, she was sure that Ada was present.

Mendoza also stated that she did not recall telling an FBI agent and a defense investigator that she does not recall seeing the couple in the bank when the account was opened.

The witness agreed with Hanson that at the time she had not heard that Melvin was stealing close to $2 million from the CNMI government.

Ada was employed by Midwest Medical Supply as an account manager until January 2009. The Commonwealth Health Center regularly purchased medical supplies and equipment from MMS—A Medical Supply Company based in Missouri, which also did business as Midwest Medical Supply Company Inc. and Midwest Medical Supply Company LLC (Midwest Medical Supply).

The prosecution alleged that between 2004 and 2011, Ada’s husband, Melvin, deposited 53 CNMI Treasury checks made out to “MMS—A Medical Supply Co. CNMI” or “Midwest Medical Supply Co. Inc” into Ada’s FHB account approximately in the amount of $1.7 million that he had unlawfully procured through the submission of false and fabricated documents at CHC.

Ada is facing three charges: conspiracy to commit laundering, money laundering, and perjury.

Melvin Ada has already pleaded guilty and is awaiting sentencing.