In a surprising turn of events, reality TV star Julie Chrisley's sentence for bank fraud and tax evasion has been thrown out by federal appeals judges. The judges have ordered a lower court to reevaluate her punishment based on what they referred to as a "narrow issue."

Julie Chrisley, along with her husband Todd Chrisley, gained fame through the reality show "Chrisley Knows Best," which documented the lives of their close-knit family. In 2022, the couple was convicted of conspiring to defraud community banks, obtaining fraudulent loans amounting to over $30 million. They were also found guilty of tax evasion for concealing their earnings whilst flaunting an extravagant lifestyle.

Their accountant, Peter Tarantino, was also tried alongside the Chrisleys and found guilty of conspiracy to defraud the United States as well as willfully filing false tax returns. The convictions of the Chrisleys and Tarantino were upheld by a three-judge panel of the 11th U.S. Circuit Court of Appeals.

However, the panel identified a legal error in how Julie Chrisley's sentence was calculated. Specifically, they found that the trial judge erroneously held her accountable for the entire bank fraud scheme. As a result, the case has been sent back to the lower court for re-sentencing.

While expressing disappointment at Todd Chrisley's failed appeal, the couple's attorney, Alex Little, stated that they were pleased with the court's decision regarding Julie's sentence. Little also mentioned that the Chrisley family is hopeful for more positive outcomes in the future.

During the trial, prosecutors presented evidence that before their reality TV stint, the Chrisleys, along with a former business partner, submitted false documents to banks in Atlanta to obtain fraudulent loans. They allegedly utilized these loans to fund lavish purchases such as luxury cars, designer clothing, real estate, and travel. When Todd Chrisley filed for bankruptcy, he left behind more than $20 million in unpaid loans.

Following the trial, Julie Chrisley received a seven-year sentence in federal prison, while Todd Chrisley was sentenced to 12 years. Additionally, the couple was ordered to pay $17.8 million in restitution.

The defense attorneys argued on appeal that an IRS officer had provided false testimony regarding the couple's outstanding taxes, and that prosecutors failed to present sufficient evidence to convict the Chrisleys of tax evasion and conspiracy. They also claimed that Julie Chrisley had no participation in the bank fraud scheme.

In the case of Peter Tarantino, his lawyer argued that being tried alongside the Chrisleys had unfairly impacted his case. However, his request for a new trial was denied.

The appellate judges concluded that the trial judge erred in holding Julie Chrisley responsible for the entire bank fraud scheme since 2006. Although there was sufficient evidence linking her to fraud from 2007 onwards, the panel called for her sentence to be recalculated based on the correct loss amount.

Currently, Todd Chrisley is serving his sentence at a minimum security federal prison camp in Pensacola, Florida, with a projected release date in September 2032. Meanwhile, Julie Chrisley is held at a facility in Lexington, Kentucky, and is expected to be released in July 2028. Peter Tarantino is incarcerated in a minimum security federal prison camp in Montgomery, Alabama, and is set to be released in August of next year, as per the Federal Bureau of Prisons website.