Melvin Ada found liable to pay $699,484 in restitution

U.S. District Court for the NMI Chief Judge Ramona V. Manglona has found Melvin G. Ada liable to immediately pay restitution in the total amount of $699,484.34 to victims Commonwealth Healthcare Corp. and Midwest Medical Supply Co. LLC.

Ada is a former CHCC employee who was slapped with 12.7 years in prison for stealing over $1.7 million from CHCC that was intended for Midwest Medical Supply, a Missouri-based company that had supplied dialysis and consumables and equipment to the hospital.

At a restitution hearing on Friday, Manglona ordered Ada to pay $566,919.26 to CHCC and $132,565.08 to Midwest Medical Supply.

Manglona said if the defendant is unable to pay the amount immediately and in its entirety, then he shall pay the amount during the period of supervision on an installment basis according to the collection policy of the U.S. Probation Office.

After the hearing, Ada was remanded into the custody of the U.S. Marshal.

Midwest Medical Supply, through counsel Richard W. Pierce, has submitted a claim for restitution in the amount of $132,565.08 due to non-payment by CHCC on 13 invoices MMS issued between 2009 and 2011 as a result of Ada’s conduct.

The U.S. government, through assistant U.S. attorney Garth Backe, opposed awarding restitution to MMS.

In a memorandum, Backe said the U.S. government has serious concern as to whether MMS meets the definition of a “victim.”

Backe said until some questions are answered, it is the good-faith position of the U.S. government that MMS’ accounting system is simply too unreliable to support an award in this case.

Indeed, Backe said, as the evidence presently stands, there actually exists a possibility that MMS owes money to CHCC and not the other way around.

At the hearing, Ada, through counsel Colin Thompson, did not object to the restitution in the amount of $566,919.26 payable to CHCC.

Backe informed the court that he has been in communication with Medicare and that the U.S. government will not be seeking any restitution for Medicare.

According to the minutes of the hearing, U.S. Probation Officer Margarita Wonenberg presented supporting documents regarding MMS’s claims.

Pierce called MMS vice president of Finance John Kastberg to testify via video teleconference.

After reviewing all the evidence and hearing all arguments from counsels, Manglona stated that she agreed with MMS counsel Pierce.

Manglona found MMS to be a victim in this case and awarded the company $132,565.08 in restitution.

Ada was previously assigned as a medical supply specialist at CHC. His wife, Leyda, used to be a sales representative for MMS. Leyda was convicted of perjury. Her sentencing set for yesterday was continued to next month.