The Montgomery County District Attorney's Office agreed to pay $1.65 million in damages to Walter Logan. District Attorney Rise Ferman, who called Logan "despicable" when he was charged in 2009, also apologized.
"We spent forty years building a business and building good character, and in virtually one day that all changed," he said at a news conference.
Logan's problems began with a dispute with the Salem Baptist Church in Jenkintown. While he said the church owed him $200,000, church officials accused him of wrongdoing, including failing to pay subcontractors on the job.
Ferman said Wednesday that he has been completely cleared.
"There's no credible evidence that Mr. Logan ever stole anything from Salem Baptist Church and we retract any statements to that effect," she said.
Logan has sued the church, and the case is scheduled for trial in September.