CHICAGO -- A federal judge on Friday dismissed a perjury indictment against an Islamic charity accused of lying about its ties to Osama bin Laden, saying the alleged conduct didn't violate the law.

The 22-page decision left no charges against Benevolence International Foundation, whose assets were frozen Dec. 14 when federal agents raided headquarters.

The group's executive director, Enaam Arnaout, in jail since April, acknowledges that he has met bin Laden but has denied having anything to do with terrorism.

Federal prosecutors had accused Benevolence and Arnaout of lying when they said in a sworn statement filed in a civil lawsuit that they did not provide support to terrorists.