October 30, 2026 – SACRAMENTO, CA – Tamara Le Ann Wallace, 56, of South Lake Tahoe, and the former mayor of South Lake Tahoe, pleaded guilty on Thursday to one count of wire fraud arising from a years‑long scheme in which she embezzled about $390,000 from a South Lake Tahoe church where she was employed as a part‑time bookkeeper, U.S. Attorney Eric Grant announced. 

According to court documents, Wallace began working for the church in 2018, where she was entrusted with managing finances, paying bills, monitoring the budget, and maintaining the church’s digital financial records. Wallace had access to the church’s bank account and was the only individual with access to the church’s digital accounting system for most of her tenure. She was not authorized to spend church funds for personal use. 

Between April 2019 and September 2025, Wallace embezzled church funds for her own benefit by issuing reimbursement checks to herself, falsely claiming they were repayments for expenses she never incurred. She also made unauthorized electronic transfers into accounts she controlled. To conceal her theft, Wallace falsified financial entries in the church’s records. Wallace spent the stolen funds on personal expenses including rent and travel. Her actions nearly caused the church to shut down, forcing it to reduce programming, take out multiple loans, and pay late fees and interest on overdue bills. 

Wallace resigned from her public office in October 2025. 

Federal Bureau of Investigation and the El Dorado County District Attorney’s Office conducted the investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.

Wallace is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on January 14, 2027. Wallace faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.

Source: DOJ Release