Ocean Springs businessman’s prison sentence could be shortened after successful appeal

Ocean Springs businessman Kenneth Ritchey might get out of prison sooner than his anticipated July 2026 release date for conspiring to commit health care fraud.

Ritchey pleaded guilty in March 2023 to conspiring with others to sell personal protective equipment at inflated prices during the COVID pandemic. Ritchey appealed the sentence and the U.S. 5th Circuit Court of Appeals agreed with him: He didn’t inflate the PPE by as much as the judge decided and used to set Ritchey’s sentence.

Judge Sul Ozerden relied on a presentence report that set the loss to victims at $2.3 million, but the appeals panel found demand had driven the market value of PPE higher than the figures used for loss calculation. The 5th Circuit directed Ozerden to recalculate the loss and sentence accordingly, which could shave as much as two years, or as little as three months, off the time he has to serve.

Ozerden sentenced Ritchey to five years in prison and ordered him to pay $281,086 to the the U.S. Department of Veteran Affairs for PPE overcharges. Ozerden is expected to resentence Ritchey at 9:30 a.m. on January 30.

The investigation into Ritchey’s business dealings began as early as April 2020, when federal agents raided Gulf Coast Pharmaceuticals Plus LLC., a wholesale distribution business Ritchey’s wife owned and he ran.