Khurram Sher, a 31-year-old pathologist, was arrested in a dramatic police takedown with two other suspects in 2010.
He pleaded not guilty to facilitating a terrorist activity. One of his co-accused was convicted last month of belonging to a homegrown terror cell and is awaiting sentencing. The third man has not yet gone to trial.
Superior Court Justice Charles Hackland in his ruling said Sher likely harbored jihadist sympathies but that the evidence did not prove he intended to join the conspiracy.
Other police intercepts, however, suggested that his alleged co-conspirators did not believe Sher was fully committed to "violent jihad."
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At trial, Sher admitted to contributing 400 Canadian dollars to the group but said he believed it was intended for Kurds in Iraq. Records showed he contributed regularly to charities.
In 2008, Sher had auditioned for the television talent show "Canadian Idol," putting on an exaggerated accent and telling producers he immigrated from Pakistan.
He also butchered Avril Lavigne's hit song "Complicated," prompting this posting on a Facebook page: "I for one am glad that he is attempting to show the nation that 'moslims' are not all extremists."
Sher was born and raised in Montreal and graduated from one of Canada's most prestigious medical schools.