Problems with phalaenopsis orchid - Yellow leaves and blooms dying

[KrystalGem]

Hi,
Six weeks ago I got my first orchid as a gift from my mother, I think it's a phalaenopsis orchid??
When I received the orchid it seemed healthy, this is what it looked like, healthy and with 3 unopened buds:


This is what's going on with the orchid:
- Week 3, the first bloom drops and one leaf starts to yellow, it was dark green and turned yellow over 2 days. It didn't shrivel up or dry up, the whole yellow leaf just feel off.
- Week 4, 3 more blooms shrivel and die, all at the same time and they go from looking pretty good to dead in less than 48 hours.
- Week 5, the last of the 3 unopened buds that bloom dies within 5 days of blooming.
- Week 6, another leaf goes from dark green to yellow literally over night, it's drooping and looks like it's about to fall off. There are 4 more blooms wilting.

I sometimes see tiny black flying bugs near the orchid, we had a fruit fly problem in Toronto after the garbage strike, I set some traps, that seemed to work as I've only seen 2 flies recently. I'm not sure if this could be a problem?

The orchid is on a table about 6 feet away from a east facing window, it gets bright light most of the day, I tilt the shades so there is no direct sunlight on the orchid.
The window is frequently open letting fresh airflow and our A/C is usually set to 71*F.
I water about every 8-10 days or when the soil starts to feel dry, I don't let it dry out between waterings. It's been quite humid lately, so the orchid hasn't been in a dry environment.

I am a total newbie when it comes to what it's potted in so I can't provide much details, it's in a plastic pot inside a ceramic pot. There is shredded mulch type material covering the soil. I'm not sure if I'm even meant to keep this mulch, I wasn't sure if was decoration or something that was meant to be there?

Here are pics of the current condition:





What could I be doing wrong? Any help would be greatly appreciated, I really love my orchid so don't want it to die on me.