In June last year, a NSW District Court jury found the then-49-year-old guilty of 34 fraud charges and not guilty of a further 13 charges.
He was sentenced to up to four years in jail in November last year and ordered to repay about $624,000 which was said to have been fraudulently taken from the Australian Idol winner over eight years.
Day’s legal team mounted a challenge to his convictions on Friday.
Today, in a rare quick decision, the NSW Court of Appeal found at least one of the three appeal grounds lodged by his legal team was successful.
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The judges found there was a miscarriage of justice in relation to the Crown’s closing address.
Day may now get a retrial, with his solicitor Lauren MacDougall confirming he’ll soon be released on bail after spending seven months behind bars.
The court convened at 5.30pm on Monday to make the orders for his release.
There is still a chance Day could be acquitted altogether with three judges still considering the remainder of the case.