Former Mayor Admits Embezzling $400K From Church, Cites 9/11 Trauma

Tamara Le Ann Wallace, the former mayor of South Lake Tahoe, has admitted to embezzling approximately $400,000 from a local church, claiming that witnessing the September 11 terror attacks contributed to her actions. Wallace, 56, pleaded guilty to wire fraud during a court hearing on Thursday and could face up to 20 years in prison and fines of $250,000.

Wallace worked as a part-time bookkeeper for Lake Tahoe Community Presbyterian Church in 2018. According to the U.S. Attorney's Office, she was the sole employee with access to the church's digital accounting system. For six years, she systematically embezzled funds by authorizing reimbursement checks to herself, falsely claiming they covered expenses she had not incurred. She then manipulated the church's financial records to conceal the theft.

The misappropriated funds were used for Wallace's personal expenses, including rent and travel. The church faced significant financial strain as a result, leading to reduced programming and the need for loans to cover overdue bills and associated fees.

Wallace resigned in October 2025. In a statement, she acknowledged her theft and attributed her behavior to the trauma of witnessing the 9/11 attacks 24 years prior. She also revealed she attempted suicide on September 11, 2025, her birthday, due to overwhelming guilt and shame. After an 18-day stay in a treatment facility, Wallace stated she is managing her recovery through medication and counseling.

Wallace indicated in her statement that counseling sessions revealed underlying reasons for her actions, though she emphasized these were not excuses. She reportedly provided officials at the church with her login credentials and account numbers, suggesting her misconduct could be easily detected.

Wallace is scheduled to be sentenced in January.