Julie Chrisley's legal journey has a new development. 

The Chrisley Knows Best alum's seven-year prison sentence in Kentucky for tax evasion and bank fraud was overturned June 21 after a three-judge panel of the 11th U.S. Circuit Court of Appeals ruled the judge in the 2022 trial miscalculated Julie's sentence.

Though the panel upheld Julie's, Todd Chrisley's and their accountant Peter Tarantino's convictions, they found there was insufficient evidence to support the ruling that Julie was involved in the entirety of the bank fraud scheme, as seen in court documents obtained by E! News. Instead, the judges determined there was insufficient evidence to prove she was involved in the scheme, which began in 2006, before 2007.

"The district court did not identify the evidence it relied on to hold Julie accountable for losses incurred before 2007, and we cannot independently find it in the record," the judges stated in their ruling. "So we vacate Julie's sentence and remand solely for the district court to make the factual findings and calculations necessary to determine loss, restitution, and forfeiture as to Julie and to resentence her accordingly."

E! News has reached out to the Chrisleys' legal team for comment but has not yet heard back. 

Julie's case will now be handed to a lower court to determine how her sentencing will be adjusted per the new ruling. Todd's 12-year sentence—which was reduced to 10 years in September—has not been affected.

Following the update in the case, the family's attorney Alex Little told People, "We're pleased that the Court agreed that Julie's sentence was improper, but we're obviously disappointed that it rejected Todd's appeal."

"With this step behind us, we can now challenge the couple's convictions based on the illegal search that started the case," he continued, appearing to refer to the misconduct case the couple won earlier this year. "The family appreciates the continued support they've received throughout this process. And they're hopeful for more good news in the future."

The judges' ruling comes six months after Julie and Todd, who reported to their respective prisons in January 2023, received a $1 million settlement from the state of Georgia after suing former special investigator Joshua Waites for misconduct in his handling of their investigation. 

The settlement was awarded in January after a Sept. 2021 report from Atlanta's Office of the Inspector General (OIG) supported Todd's claim "he was unfairly targeted for investigation due to his 'celebrity status."

The OIG's investigation found photos of Joshua posing on the Chrisley's seized furniture, as well as messages bragging about having done so. The report's findings also said Joshua's office filed an improper request with the U.S. Treasury Department to access the reality TV stars' bank accounts.

Despite the allegations of misconduct, however, in June 2022 Todd and Julie were found guilty on 12 counts, including charges of wire fraud, conspiracy to commit bank fraud and conspiracy to defraud the United States. They began their sentences in January 2023, which were each shortened in September—with Julie's seven-year sentence dropping to five in addition to Todd's changing to 10. 

"Without a doubt," Jay Surgent, an attorney for the couple, told Insider at the time, "Todd and Julie are model incarcerated individuals who received exorbitant sentences." 

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