She was kidnapped prior to the events of the game by a gang of scoundrels. They locked her in Nido Tower and demanded a large ransom from her father. Unable to pay it, he turned to robbery and murder in a frenzied bid to somehow raise enough money to get his daughter back.
When Rolf and friends infiltrated the gang's hideout at Shure, they found a note stating her location. The group penetrated the tower's upper levels where they found her. She had somehow been able to avoid the monsters that had slaughtered the rest of the gang. They then took Teim back to Darum, making sure to hide her face with a veil in order to avoid attacks from vengeful citizens.
Once they arrived at the North Bridge, Teim rushed to her father. Not recognizing her, however, Darum demanded payment. When she refused, he killed her with his sword. As she fell, her disguise came off and he was able to recognize her a moment too late. He immediately killed himself out of grief.