Tega Cay magistrate Deborah A. Koulpasis, 35, faces a breach of trust charge related to financial dealings with the Michael Gillen law firm, where Koulpasis was formerly employed, said Lt. Jerry Waldrop of the Rock Hill Police Department.

Koulpasis resigned Wednesday afternoon.

According to a police report, Koulpasis of 5066 Swarrow Circle in Tega Cay was dismissed by the Gillen Law Firm in May 2005. The law firm later found discrepancies in several deposits. Koulpasis is "believed to have taken these ... and converted them to her own use," the reports note.

"The exact dollar amount is still under investigation," Waldrop said.

Koulpasis' arrest is part of an ongoing investigation, he said.

Michael Gillen was not available for comment Wednesday evening.

Koulpasis, also a private attorney, was arrested around 11:30 a.m. Wednesday. She was released around 3 p.m. on a $25,000 bond.

Tega Cay City Manager Grant Duffield said Koulpasis gave her resignation Wednesday afternoon.

"She has served the city well," Duffield said about Koulpasis, who served as judge for two years. "I was surprised at the resignation and the reason behind it."

Tega Cay leaders will discuss the status of their court system and their judges during a closed session tonight.

Mayor Bob Runde said Judge Grady McMahon, the city's first judge who had retired, will try the city's cases for now.