Tahoe ex-mayor admits stealing $390,000

Tamara Le Ann Wallace, 56, pleaded guilty to wire fraud in federal court this week, concluding a case that exposed deep financial damage to a local congregation. The former mayor of South Lake Tahoe had served as a part-time bookkeeper for Lake Tahoe Community Presbyterian Church while she diverted money from its bank account for personal use.

Prosecutors allege that Wallace embezzled approximately $390,000 from the church between April 2019 and September 2025. She wrote reimbursement checks to herself for expenses she claimed but did not incur. She also moved money via electronic transfers into accounts she controlled and altered financial records to conceal the transactions.

The theft strained the church’s finances to the point of near closure. According to the U.S. attorney’s office, the organization was forced to scale back its programming, secure loans, and pay late fees and interest on overdue bills. Wallace faces a maximum sentence of 20 years in federal prison and a fine of $25,000 at her sentencing hearing in January.

Wallace resigned from public office in October 2025 after confessing in a letter to the Tahoe Daily Tribune that she had taken church funds. She described the admission as the hardest thing she had ever had to do and stated that she had attempted suicide due to guilt and shame. Neither Wallace’s attorney nor the church immediately responded to requests for comment.

Court records indicate Wallace has faced legal issues related to finances before. Federal Insurance Company, now a subsidiary of Chubb, sued her in 2006 after discovering a theft of funds that same April. The former mayor agreed to repay $110,834 through a promissory note that required payments of $200 per month. A representative for the law firm that filed the suit on behalf of the insurance company said the firm handles workers’ compensation cases.

The insurance company sued Wallace again in 2021, citing missed payments on the original debt. In 2022, Wallace agreed to a new payment plan that required an initial payment of $2,500 by June 1, followed by $400 monthly payments until the balance was cleared.