Federal prosecutors have charged former South Lake Tahoe Mayor Tamara Wallace with wire fraud, accusing her of embezzling nearly $390,000 from the Lake Tahoe Community Presbyterian Church while she worked as its bookkeeper. Wallace, who resigned from the mayorship last October, could face up to 20 years in federal prison if convicted, along with a fine of up to $250,000 and three years of supervised release.
The U.S. Attorney's Office filed the single wire fraud count this week, and the case is now known as United States v. Wallace, according to the Tahoe Daily Tribune. As reported by the Sacramento Bee, Wallace began working as the church's bookkeeper in 2018 and started taking money about a year into the job, a role that gave her authority to write checks and initiate electronic payments as an authorized signer on the church's bank account.
Wallace was responsible for paying the church's bills, tracking its expenses and monitoring its budget, according to the Bee's reporting. Charging documents allege that from April 2019 through September 2025 she wrote herself roughly $360,000 in checks and made about $31,000 in unauthorized electronic transfers, per the Tahoe Daily Tribune — though the Sacramento Bee has separately described the theft as more than $360,000, and federal prosecutors have characterized the total figure as nearly $390,000. The Tribune reports that Wallace allegedly disguised the checks as reimbursements for expenses she had never actually paid out of her own accounts, including one filing that alleges she wrote herself a $7,500 check on September 5, 2025, with only the word “Reimb.” noted on the memo line.
Money Went to Rent and Travel, Prosecutors Say
Prosecutors allege Wallace used the embezzled funds for travel expenses and to cover rent on her home, according to the Tahoe Daily Tribune. She was never a member of the church's congregation and did not attend services there, the church has said, telling the Tribune, “She did not attend our church nor was she a member.”
Lake Tahoe Community Presbyterian Church, which the Bee identifies as the victim of the alleged theft, fired Wallace on September 26, 2025, and referred the matter to law enforcement, the Tribune reported at the time. The church has since sought donations to help recover from the financial strain, with the Bee noting that the missing money helps keep the church's doors open and fund its programs.
A Public Confession Followed by Resignation
Wallace publicly admitted to taking the money in a statement reported by KTLA, writing, “I am publicly admitting that I took funds from the Presbyterian Church over an extended period.” In that same statement, per the Sacramento Bee, she wrote, “Sorry is not a strong enough word to explain the depths of my regret and shame,” and attributed her actions in part to alleged childhood abuse, memories of the September 11 attacks and an armed robbery she said she experienced in Russia. KTLA also reported that the confession came after Wallace had attempted suicide.
Wallace resigned from the South Lake Tahoe mayorship on October 13, 2025, the Bee reported. The city has said her conduct caused no financial damage to South Lake Tahoe itself, with officials telling Carson Now, “The City is in no fiscal harm from this situation and continues to provide essential services to our residents.” As of the Bee's reporting, Wallace had not yet appeared in court or entered a plea, and had a pending arraignment date in Sacramento federal court.
Residents Demand Accountability Amid Second Scandal
The case has fueled frustration in the roughly 21,000-resident city, where Wallace's successor, Cody Bass, has also faced legal trouble. Bass was arrested and charged with misdemeanor trespassing and harassment following an incident at a brewery, according to the Los Angeles Times, and was later convicted of harassment and ordered to spend 10 days in a Douglas County, Nevada, jail, per the Bee. The South Lake Tahoe City Council appointed Bass interim mayor despite his prior arrest connected to the brewpub incident, a decision that drew criticism as detailed by Fox40.
Residents wrote an open letter to the El Dorado County District Attorney pressing for greater transparency and systemic reform in the wake of both controversies, according to Fox40's coverage. The back-to-back scandals involving Wallace and Bass have embarrassed South Lake Tahoe's leadership, per the Bee, even as the city continues to grapple with growing pains tied to a post-pandemic influx of new residents that has pressured Lake Tahoe's water quality and local real estate values, as the Los Angeles Times has reported.
