The U.S. government has reduced to nine the previous 16 charges it filed against Leyda I. Ada, who allegedly conspired with her husband in a healthcare and food stamp fraud.
The second superseding indictment filed in U.S. District Court for the NMI on Tuesday charged Ada with one count of conspiracy to commit money laundering, one count of money laundering, five counts of mail fraud, one count of conspiracy to commit food stamp fraud, and one count of perjury.
According to assistant U.S. attorney Garth R. Backe, the Commonwealth Health Center regularly purchased medical supplies and equipment from Midwest Medical Supply, a Missouri corporation. Because Midwest Medical Supply did not maintain any inventory in the CNMI, all of its products had to be shipped from warehouses in either Missouri or Guam.
Ada was employed by Midwest Medical Supply as an account manager until January 2009. In June 2004, she obtained a business license from the CNMI Department of Finance for a sole proprietorship doing business as “MMS, CNMI.”
Ada’s spouse Melvin was employed as a medical supply specialist at CHC until July 2011. During his CHC employment, he was responsible for facilitating purchases from and payments to Midwest Medical Supply.
Between 2004 and 2011, Ada’s husband allegedly deposited 53 CNMI Treasury checks made out to “MMS—a Medical Supply Co., CNMI” or “Midwest Medical Supply Co. Inc.” into Ada’s business savings account at First Hawaiian Bank totaling about $1,796,523.75 that he had unlawfully procured through the submission of false and fabricated documents at CHC.
From July 4, 2011, through Sept. 25, 2012, Ada conspired with her husband and others to commit money laundering.
Specifically, Ada and her co-conspirators allegedly agreed to conduct financial transactions knowing that the property involved represented proceeds from health care theft and embezzlement.
Immediately after Ada’s spouse stopped reporting to work at CHC on July 5, 2011, he and Ada, aided by others, held a series of financial transactions to conceal the proceeds derived from healthcare fraud and embezzlement.
As an example, the couple allegedly closed out six accounts at First Hawaiian Bank, Bank of Guam, and Bank Pacific but not before withdrawing at least $75,000 between July 5, 2011 and Aug. 11, 2011.
Ada’s spouse allegedly transferred and attempted to transfer his title in six vehicles to Ada and other immediate relatives for no consideration or for just $1.
Beginning April 2006 and continuing through November 2012, Ada and her spouse filed Territorial Individual Income Tax Returns that underreported their true income and falsely claimed to be entitled to refund checks for tax overpayments and child tax credits.
On Sept. 23, 2011, Ada’s spouse applied for food stamp benefits and lied that the household had no income, resources, bank accounts, or cash on hand. On Oct. 7, 2011, the couple received and signed their food stamp identification card.
Last October, Ada pleaded not guilty to the indictment that charged her with one count of conspiracy to commit health care theft and embezzlement, six counts of healthcare theft and embezzlement, five counts of mail fraud, one count of money laundering, one count of conspiracy to commit money laundering, one count of conspiracy to make false statements in applications for food stamp benefits, and one count of perjury.
The original indictment charged Ada and her husband, Melvin, with 59 counts. Melvin Ada pleaded guilty to 56 charges and is awaiting sentencing.