SOUTH LAKE TAHOE, Calif. – Mayor Tamara Wallace, in a letter to the Tribune, admitted to embezzlement from the local Presbyterian church, where she also served as the administrator. Depending on the investigation, Wallace may be legally removed from serving on city council and other public offices.

Wallace opened the letter by publicly admitting that she took funds from the church over an extended period of time, which directly resulted in her trying to take her own life on September 11.

According to both Wallace and her husband Duane, she spent time in medical care and is now in mental health counseling sessions. She was the one who provided the account numbers and passwords to the church while she was in the hospital.

Wallace also said that she “may have found justification by using most of those funds to help others, such as my deceased son’s three children.” It is unclear at this time how much she embezzled, though due to the extended period of time that the embezzlement occurred over, it could be a fairly large sum.

Melanie Torres, interim assistant to Vern Pierson at the El Dorado District Attorney’s office told the Tribune that she learned they would be investigating the embezzlement on Wednesday last week.

The Presbyterian church provided no comment to the Tribune.

California Government Code 1021 states that if a public employee is convicted of a felony, such as the embezzlement of public money, they shall be disqualified for five years from any public employment, including with the city or county. Embezzlement in California is considered a felony when the stolen amount is worth more than $950.

Wallace has served on city council for years and also serves as vice chair of the California Tahoe Conservancy board, is on the Clean Tahoe board and is chair of the El Dorado Local Agency Formation Commission, among other positions.

City attorney Heather Stroud told the Tribune that if a council spot was left open due to a crime like this, it would result in an immediate vacancy that could be filled either by special election or an appointment by other councilmembers depending on the time left in their term.

Wallace ended her letter by saying, “I love our town and, regardless of the outcome, will dedicate my life to making it a better place to live.”

If you or someone you know is struggling with mental health or thoughts of suicide, there are resources to help you. Call 988 for the Suicide and Crisis Lifeline.

Eli Ramos is a reporter for Tahoe Daily Tribune. They are part of the 2024–26 cohort of California Local News Fellows through UC Berkeley.