Ex-South Lake Tahoe mayor pleads guilty to wire fraud in church embezzlement case

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Set us as preferred A former South Lake Tahoe mayor whose church fraud case shocked residents in the scenic Sierra Nevada city pleaded guilty to wire fraud this week in federal court.Tamara Le Ann Wallace, 56, had been working as a part-time bookkeeper for Lake Tahoe Community Presbyterian Church when she embezzled funds from the church’s bank account for personal use, taking so much from the church that it nearly caused the organization to shut down, according to the U.S.

attorney’s office.Wallace faces up to 20 years in federal prison and a $25,000 fine at her sentencing hearing in January.Prosecutors allege Wallace embezzled about $390,000 from the church’s coffers between April 2019 and September 2025, spending some of the funds on rent and travel expenses.

Wallace wrote reimbursement checks to herself, claiming they were repayments for expenses she never incurred.She also made electronic transfers into accounts she controlled and falsified financial entries in an effort to hide her tracks, according to prosecutors.Wallace’s attorney and the Lake Tahoe Community Presbyterian Church did not immediately respond to requests for comment.

But, according to prosecutors, Wallace’s actions forced the church to scale back programming, take out loans and pay late fees and interest on overdue bills.California With its scenic vistas and clear alpine waters, South Lake Tahoe long has been a destination for outdoor enthusiasts, vacationers and wealthy Californians looking for a reprieve from city life.

Wallace resigned from public office in October 2025 soon after she confessed in a letter to the Tahoe Daily Tribune that she had taken funds from the church.She wrote that the admission was “the hardest thing I have ever had to do” and said she had attempted suicide due to guilt and shame.It wasn’t the first time Walla...