Melvin Ada gets 12.7 years in prison

U.S. District Court for the NMI Chief Judge Ramona V. Manglona handed down yesterday a sentence of 12.7 years in prison against former Commonwealth Healthcare Corp. employee Melvin Garong Ada for stealing over $1.7 million from CHCC that was intended for a medical supplier.

“What you did was really reprehensible,” Manglona told the 42-year-old Ada. “You did not steal once but 54 times in the course of seven years in the amount of almost $2 million.”

A tearful Ada was hugged by his crying mother, wife, children, and relatives after sentencing.

Ada was sentenced to 120 months imprisonment for 19 counts of theft or embezzlement in connection with health care, 120 months for nine counts of health care fraud, and 151 months for 28 counts of money laundering. The sentence shall run concurrently, meaning the defendant will serve a total of 151 months in prison—12 years and seven months.

After serving his sentence, Ada will be placed on three years of supervised release and required to perform 500 hours of community service.

Manglona ordered Ada to immediately pay $5,300 in court assessment fee.

The judge also granted the U.S. government’s motion for money judgment in the amount of $1.8 million, representing the total gross proceeds Ada obtained as a result of his criminal conduct.

A separate hearing will be held on March 11, 2016, to determine the amount of restitution Ada must pay, as well as issues regarding whether or not Medicare or Medicaid are victims in this case.

Assistant U.S. attorney Garth Backe said the U.S. government has no objection to CHCC being awarded restitution but opposes Midwest Medical Supply Co. LLD being considered a victim and/or receiving restitution in this case.

Attorney Colin Thompson, counsel for Ada, joined in the U.S. government’s objection to Midwest Medical Supply’s claim for restitution.

U.S. Probation officer Margarita Wonenberg stated that she reached out to Midwest Medical Supply about the case, and that the company submitted a victim affidavit.

Manglona said 54 checks were involved and that Ada specifically stole from the hospital, which is the only hospital in the CNMI.

Manglona said that large amount of checks were involved—the first was $10,000 and there was also $74,000.

Citing his own words, Manglona said that Ada was in a position of trust, tasked to take care of the wellbeing of patients at CHC.

“Somehow you knew how to manipulate the system,” Manglona said, also citing Ada’s poker, drinking, and smoking addictions.

Yet Manglona also pointed out that there was clearly a breach of protocol at CHC with respect to checks and balances.

In imposing the high level end of the sentencing guidelines range, Manglona said Ada’s actions warrant harsh punishment.

She recommended that Ada take part in a financial responsibility program while in prison and any vocational education program to enhance his employment skills.

Manglona said Ada shall be given a mental health evaluation for addiction to gambling and substance and alcohol abuse, and to address anger management.

The remaining three counts in the indictment were dropped as part of the plea deal.

Before the sentence was handed down, Ada apologized for committing the crimes.

“I defrauded the hospital,” said Ada, in tears. He said he used his position for his own benefit.

Ada apologized to his wife, Leyda, for all the embarrassment he caused to her “for something she did not do.”

“I just want you to forgive me. I love you with all my heart,” he said.

He asked their three children to continue working with their dreams and not follow his ways.

“I love you with all my heart,” he told his children.

He apologized to his parents, siblings, and in-laws for the embarrassment he caused them. He also thanked his siblings for their forgiveness and support.

Ada said he has anger management problems and poker, smoking and drinking addictions.

Backe had recommended that Ada be sentenced to the high end of the sentencing guidelines or 151 months (12 years and seven months) imprisonment.

Backe said Ada, a then-public employee took advantage by stealing from the people of the CNMI not once but at least 54 times in the amount close to $2 million.

“Every time he stole, he lied,” Backe said.

Ada spent the money on fancy cars, jewelry, designer bags, international trips, and opening businesses, he said.

Backe said Ada also lied to get food stamps, which is also a theft and fraud.

Backe said the most single most aggravating factor is the effect on people. He said dialysis patients had tremendous pain and tremendous recovery time—all caused by Ada. He said this reprehensible conduct warrants the high end of the sentencing guidelines.

In the U.S. government’s sentencing memorandum, Backe said Ada was the “organizer, leader, manager, or supervisor” of the criminal activity he undertook with his wife and co-defendant, Leyda, from 2004 through 2011.

Taking advantage of his government job, Ada stole $1,941,491.25 that belonged to the people of the CNMI, he said.

Backe said Ada did not breach their trust just once or twice, but no less than 54 times over a seven-year period.

While Ada’s theft is appalling in both its scope and scale, what truly makes it reprehensible is that it harmed actual people, Backe said.

He said Ada singlehandedly caused the hospital to stop receiving peritoneal dialysis supplies from MMS, which forced some patients to switch over to hemodialysis treatment.

Backe said according to Dr. Sherleen Osman during the investigation, “switching to hemodialysis was a significant burden on the patients, some wrote letters and some cried when they had to change treatment types.”

Backe said former Public Health secretary Joseph Kevin Villagomez, during interview by agents, noted that one of the patients came to him and “personally begged for the hospital to find peritoneal supplies so that she did not have to suffer through full dialysis.”

Backe said after being fired from CHCC on July 5, 2011, Ada tried desperately to hide his crimes and the money he had stolen. He said Ada drained his bank accounts and transferred ownership of his vehicles to relatives.

Backe said Ada committed even more fraud by applying for (and receiving) food stamps and Medicaid within weeks of withdrawing or spending $75,000.

Backe asked the court to send a message that egregious government theft will be met with exacting punishment.

“It must put the fear in others who commit, or are planning to commit similar crimes, that they will suffer the same fate. And lastly, it must show the community that standing up in respect for the law ensures justice will be served against those that do not,” he said.

Probation officer Margarita Wonenberg, who said that Ada’s actions are reprehensible and very egregious, recommended the low end of the sentencing guidelines, which is 121 months imprisonment.

Attorney Colin Thompson, counsel for Ada, said it is time for Ada to pay for his crimes. He said Ada pleaded guilty to all but three counts and that Ada complied with the bail conditions in three years.

Thompson said seven and a half years—the lowest end of the sentencing guidelines—is sufficient but not greater than necessary, adding that seven years and a half years is a long time to serve in prison.

Ada pleaded guilty in October 2013 to 19 counts of theft or embezzlement in connection with health care, nine counts of health care fraud, and 28 counts of money laundering as part of a plea deal with the U.S. government.

His wife, Leyda Ada, was acquitted in June of charges of conspiracy to commit money laundering and money laundering. The jury, however, found her guilty of perjury. She has yet to be sentenced.

Melvin Ada was previously assigned as a medical supply specialist at CHC. Leyda Ada used to be a sales representative for Midwest Medical Supply Co. Inc., a Missouri-based company that had supplied dialysis consumables and equipment to CHC.