HILLSBORO - A Washington County Circuit judge called the leader of a metaphysical Internet sales company manipulative and controlling and his testimony unbelievable, even as he acquitted him today of charges that he had sex with an underage boy.

Judge Steven L. Price, after a five-day trial without a jury, found Eric James Pepin, 40, not guilty of two counts of second-degree sexual abuse, four counts of third-degree sexual abuse and one count of using a child in a display of sexually explicit conduct.

Also acquitted of third-degree sexual abuse and using a child in a pornographic display was Jamison Dwight Priebe, 21, who has worked for Pepin's Higher Balance Institute since he was 18.

"Everybody has stood by me who knows me," Pepin said today.

However, Price said it was "probable that the conduct alleged in all counts occurred," but he wasn't convinced beyond a reasonable doubt.

The accuser testified Pepin had him take off his shirt the first day they met at Pepin's Beaverton home in April 2004. He said Pepin asked him how old he was the first day they met and that he told him the truth.

But within days the two were having sex, including a three-way encounter with Priebe, the youth testified. Pepin called it "crossing the abyss," the accuser said, "surrendering yourself to your teacher, your master."

Stephen A. Houze, Pepin's private defense attorney, called the accuser a liar more than 100 times in his closing argument and noted that Pepin was "the perfect patsy" because society wants to believe the worst of a gay man.