MONTREAL - Reza Tehrani, 54, was acquitted of four counts of fraud Tuesday morning at Montreal Court house.

Tehrani, the owner of the Aviron Technical Institute as well as other assorted food packaging businesses, was charged with fraud after four companies that he set up for his brother went bankrupt.

Four banks, including the TD-Canada Trust and Scotiabank, had lent up to $250,000 to the businesses. The loans were secured based on unreliable information submitted by Tehrani's brother.

The banks noted that the Tehranis never lost any of their own money in their business failures.

On Tuesday a Montreal judge said that although he was unconvinced by Tehrani's claims of ignorance, there was not enough evidence to convict him.

Tehrani also was in the news in 2010 when he was held hostage for three days. Police suspected that unpaid creditors committed the kidnapping but Tehrani never filed charges in the incident.

Court record show that Tehrani is still facing several lawsuits relating to failed business ventures.