A Kalispell man has denied allegations that he collected more than $18,000 in illegal unemployment benefits and federal compensation.

Nathan Hale, 26, pleaded not guilty to felony theft Thursday in Flathead District Court.

A court document alleges that Hale reported making about $23,000 between January 2009 and July 2011 despite actually earning more than $63,000 as an employee of Plum Creek Northwest Plywood Inc.

Hale allegedly received $17,578 in unemployment benefits and $925 in federal compensation.

If Hale is convicted, he will face up to 10 years of incarceration and a fine of up to $50,000. He also would owe the Montana Department of Labor and Industry repayment of more than $24,000 because of a 33 percent penalty for overpayment.

According to testimony during the hearing, Hale is currently employed in North Dakota, working two out of every four weeks.

Hale’s next hearing is set for April 9.