A former city employee charged with helping veterans receive assistance pleaded not guilty yesterday to creating a kickback scheme and blowing the money on gambling.

A grand jury last week returned a 20-count indictment against Joseph Miller, 57, of Beverly, who was charged with fraud and larceny.

Miller, a clerk for the Veterans’ Services Department, forged time cards and other documents for two women working as health care aids and demanded they provide him with a portion of their payment, authorities said.

Court documents showed Miller knew one of the victims from his childhood in South Boston and when demanding payment he “repeatedly asked if she wanted her mother to continue receiving services.”

Miller also allegedly drove one of the victims to City Hall where she picked up her check and then to a bank so she could cash it and give him the money.

Investigators said Miller spent “thousands” wagering on horse racing last year.