The Herald of Rock Hill reported Friday that the mayor of the Chester County town of Fort Lawn fired Police Chief Mike Revels.
Mayor Clif Ferguson says he thinks the arrest would be a distraction for Revels and he wouldn't be able to do his job.
State Law Enforcement Division agents on Wednesday accused Revels of stealing $100 of $200 from a victim during a 2007 investigation while he was police chief in Great Falls.
Revels has denied the charge, saying he turned in all the money from the victim.
Revels had been police chief in Fort Lawn since December.
Officer John Poovey was named as acting police chief.