KENAI -- A 52-year-old Kenai man charged with creating a charity for overseas soldiers and keeping most of the donations has pleaded not guilty to fraud and theft.

Frank Roach was arraigned Tuesday in Kenai. He's charged with creating Alaska Veterans Outreach Boxes for Heroes and claiming that the group would send care packages to soldiers stationed overseas.

State prosecutors say Roach hired people to solicit donations in front of stores but that he used much of the money for living expenses. Kenai Police Department investigator Jeff Whannell tells the Peninsula Clarion that the group raised more than $140,000 from April 2010 to October 2011.

Roach is charged with scheming to defraud and eight counts of theft. His trial was set for July 16.