BOSTON – The former Saugus Library worker accused of funneling more than $800,000 from the library to her personal bank account pleaded not guilty Tuesday afternoon at her arraignment at the U.S. District Court in Boston.Prior to the arraignment, Linda Duffy sat on a bench on the seventh floor of the John Joseph Moakley U.S. Courthouse looking calm and sure of herself as she talked and occasionally laughed with her lawyer, Fred Riley.Duffy, a 65-year-old former administrative assistant for Saugus Library, was charged on Dec. 8 with 10 counts of money laundering, four counts of mail fraud and one count of aggravated identity theft after, court documents allege, she diverted library late fees and fines along with charitable donations over an 11-year period. She faces more than 40 years in prison and up to $750,000 in fines.At the start of the arraignment, which lasted about five minutes, Judge Robert B. Collings deemed Duffy unable to afford a lawyer and allowed Riley to represent her.?Considering your only asset is one the government seeks to forfeit, I would say you?re unable to afford an attorney,” Collings told her.After her plea, the judge set a case conference date for Jan. 25 and dismissed Duffy, who remains free on $100,000 bail. Duffy, wearing black pants and a black and white paisley shirt, left the courtroom quickly and drove away in a navy Ford Edge that was waiting for her outside.Click to view court documents alleging Linda Duffy laundered millions from the Saugus LibraryTaylor Provost can be reached at [email protected].