A 65-year-old Union resident who once managed building and zoning operations for the city is now facing a felony embezzlement charge after authorities say she used her position to siphon more than $10,000 in cash from public funds. Kathy Ann Teague was arrested Monday and booked into the Union County Detention Center before posting a $5,000 bond the same day.
Teague was formally charged with embezzlement of public funds valued at $10,000 or more, according to The State. An arrest warrant cited by the outlet alleges Teague used her city position to embezzle the cash from January 2022 through June 2026, though a separate report from WYFF4 describes the alleged theft window differently, saying SLED accused her of embezzling the money between January 20-22 and June 20-26. The discrepancy between the two timeframes has not been resolved in public reporting.
The case traces back to a statement the City of Union posted in late June, when officials said an employee in the city's planning and zoning department had engaged in theft of public funds over a period of several months. The city said the employee responsible was no longer on staff by the time the statement went out, and that the misappropriation was discovered through the city's internal financial controls, not an outside tip.
SLED Steps In At City's Request
The Union Public Safety Department turned the investigation over to the South Carolina Law Enforcement Division, asking the state agency to lead the probe, per the same account from The State. SLED formally charged the former employee on Tuesday, October 6, 2026. The city, for its part, said in its June statement that it would further review its internal financial controls and implement any additional safeguards found necessary.
The former city employee is accused of embezzling over $10,000 in public funds, aligning with the figure cited in the felony charge against her.
What Teague Could Face in Court
If convicted on the felony embezzlement charge, Teague faces a maximum punishment of 10 years in prison and a fine under South Carolina law, The State reported. The case is set to be prosecuted by the 16th Circuit Solicitor's Office, and Teague is scheduled to return to court on January 5, 2027.
South Carolina's embezzlement statute, found in Title 16, Chapter 13 of the state code, allows courts in such trials to infer that funds an officer or other person received and failed to account for, as required by law, were fraudulently appropriated. That is a legal inference permitted under the statute generally, not a finding by any court that it applies to Teague's case specifically.
Beyond the charge itself, several details remain unconfirmed. Public reporting has not laid out the exact amount Teague is accused of taking beyond the more-than-$10,000 threshold tied to the charge, nor has it included comment from Teague or an attorney representing her. It's also not yet known whether any of the missing funds have been recovered or what additional financial safeguards, if any, the city has put in place since its June statement.
