Former South Lake Tahoe Mayor Pleads Guilty in Church Fraud Case

Tamara Le Ann Wallace, 56, admitted to wire fraud in a federal case involving money taken from Lake Tahoe Community Presbyterian Church, where she worked part time as a bookkeeper. Prosecutors say the theft totaled about $390,000 between April 2019 and September 2025.

Wallace used church funds for personal expenses, including rent and travel, prosecutors said. She wrote reimbursement checks to herself for expenses she had not incurred, transferred money to accounts she controlled and altered financial records to conceal the transactions.

Financial strain forced the church to cut its programs, obtain several loans, and incur late charges plus interest on overdue accounts. Wallace resigned from public office in October 2025 after acknowledging in a public letter that she had taken church funds. In the letter, she said guilt and shame had led to a mental health crisis and an attempt to end her life.

Wallace is scheduled to be sentenced on January 14, 2027, and faces up to 20 years in federal prison. The church referred the matter to law enforcement after ending her employment in September 2025.