COLUMBIA — The director of South Carolina’s licensing agency says a state investigation found a worker was selling cosmetology licenses illegally and was arrested.

Labor, Licensing and Regulation Department Director Catherine Templeton told a state Senate panel Friday that the employee was fired last year and subsequently investigated by the State Law Enforcement Division.

Templeton said the licenses can be used to bring in illegal immigrants for human trafficking. She said a beauty school was investigated amid human trafficking concerns. She said the state cannot determine who may have been issued licenses inappropriately from the school.

Templeton says a second employee was allowed to retire as federal investigators looked into licensing.

Edgefield Sen. Shane Massey says he’s disturbed by the report.