A local man accused of stealing from his employer while the business was closed during the COVID-19 shutdown has pleaded not guilty in Lincoln County District Court.

James Watts, 25, was arraigned on a single count of felony theft on Sept. 28. The charge stems from an alleged slew of thefts culminating during the height of statewide COVID-19 restrictions between March and June.

Management with the 4Bs restaurant in Libby approached investigators with the allegations in late June. They told Libby police officers that an assortment of items, including equipment and food, had gone missing since the restaurant closed.

According to court documents, the staff suspected Watts as they believed he was behind previous thefts. An employee also told authorities she had spotted a missing freezer on Watts’ front porch.

When investigators turned up at Watts’ home, joined by the man’s probation officer, on June 25, he allegedly admitted to taking a waffle iron and a freezer. He claimed restaurant management knew about his taking the freezer, court documents said.

Watts said he took the waffle iron as compensation for shorted paychecks, according to court documents. He denied taking anything else.

A subsequent search of his home revealed drug paraphernalia, the allegedly stolen waffle iron and assorted kitchenware, court document said. But investigators also came across items, including Sysco brand food, which seemed out of place and likely taken from the restaurant.

Restaurant management provided authorities with an updated list of missing or suspected stolen items upon request. They also accused Watts of regularly ordering foodstuffs for the restaurant and taking it home upon delivery, court documents said.

The revised list included about $2,499.58 in goods, according to the affidavit.

Felony theft carries a maximum three-year sentence and fine of up to $1,500.

An omnibus hearing is scheduled for Nov. 30 with a pretrial conference set for Jan. 11. Were Watts’ case to go to trial, it would begin Feb. 16.