Rabbi Baruch Chalomish has been found not guilty by a Manchester Crown Court jury on two counts of intent to supply drugs discovered by police at his home in Salford and a Manchester city centre apartment.
The rabbi pleaded guilty to possession of Class A drugs found at his home and the Shudehill apartment.
His co-defendant, Nasir Abbas, was convicted, in his absence, of intent to supply. A warrant is out for his arrest. The judge described him as "the main player" in the case.
Rabbi Chalomish will be sentenced on December 17.