A former chief of the Olney Fire Department has pleaded not guilty to a felony theft charge that arose after allegations that he stole more than $50,000 from the Olney Fire District.

Kenneth Morehead pleaded not guilty on Thursday before Flathead District Judge Robert Allison. A jury trial was set for May 30.

Court documents allege that between January 2012 and July 2016, Morehead was responsible for unauthorized purchases totaling $51,722 from the Olney Fire District’s checking account, credit cards and accounts at various businesses that were unrelated to the district’s operations.

Morehead officially resigned from his position as fire chief on July 27.

An audit conducted by Flathead County Finance Director Sandy Carlson allegedly found that the purchases were “personal in nature,” court documents state. Morehead allegedly admitted on Aug. 4 to using the district’s funds for personal reasons during an interview with a Flathead County Sheriff’s deputy.

The charges came after community members started alleging that Morehead and other individuals personally benefited from a pattern of questionable spending. The small fire district that mostly serves a town of 200 individuals spent $25,000 more than was budgeted for fiscal year 2016.

That was after the fire district’s budget had doubled to $167,000 over a handful of years.

In a July interview with the Daily Inter Lake, Morehead said he used “bad judgment” in the past when it came to spending, but said it was in an effort to keep firefighters for the 10-person department.

If convicted, Morehead could face between one and 10 years in prison and a maximum fine of $50,000. He could also be ordered to pay restitution if found guilty.

Reporter Megan Strickland can be reached at 758-4459 or mstrickland@dailyinterlake.com.