The El Dorado County District Attorney’s Office (DA) has opened an investigation into embezzled funds at Lake Tahoe Presbyterian Church.

South Lake Tahoe Mayor Tamara Wallace admitted in a letter to South Tahoe Now that she stole the funds over a “period of time” through her position as the church’s administrator.

The Lake Tahoe Community Presbyterian Church (LTCPC) board of directors submitted a statement concerning South Lake Tahoe Mayor Tamara Wallace’s confession to embezzling funds from the church.  “Tamara Wallace has formally acknowledged committing a significant offense against the congregation of Lake Tahoe Community Presbyterian Church. When this was discovered by the church, her employment was terminated on September 26, 2025, and the matter was appropriately referred to law enforcement authorities. She did not attend our church nor was she a member. Our congregation has suffered extensive loss, and as we address this loss and its impact, we remain committed to prayer, compassion, transparency, and justice.”

Wallace said guilt, shame, and grief over the situation led her to a mental health crisis and attempted suicide last month.

According to the DA’s office, they are currently “handling the investigation into the incidents involving Mayor Tamara Wallace.” Their spokesperson, Melanie Torres, said that because this matter remains an active investigation, they are unable to provide further comment at this time.

The City of South Lake Tahoe issued the following statement about Wallace on Monday:

The City is aware of the criminal investigation involving Mayor Wallace. The El Dorado County District Attorney’s Office is handling this matter, and therefore, we have limited information about the investigation. The City is in no fiscal harm from this situation and continues to provide essential services to our residents.

The South Lake Tahoe Police Department was informed of potential embezzlement at the end of the week, starting September 22. They then turned it over to the DA’s office due to the conflict of interest, according to Lt. Scott Crivelli.

There are many more details yet to be released, including the amount of money Wallace said she took, how long the church knew, and how they found out, and the next steps are for the City Council.

The City Council’s next meeting is on October 21. At this time, Wallace has not submitted her resignation, and it is unknown if she plans to. 

The Wallace letter comes at the same time as the arrest of Mayor Pro Tem Cody Bass on alleged trespassing and harassment charges in Douglas County. Douglas County dropped the charge of assault when filing charges on Oct. 2.

“I can guarantee my community I did nothing wrong,” said Bass in a statement. “I believe in due process, bring on the trial.”

The first court date for Bass will be in Tahoe Township in December. 

In California, you are permanently disqualified from holding public office if you have been convicted of a felony involving corruption, bribery, or misuse of public funds. The church funds are not considered public funds unless they receive direct government grants, subsidies, or are part of a government program like Charitable Choice.

There is no Code of Conduct for councilmembers, though they abide by a list of protocols concerning the Brown Act, how meetings are conducted, and the councilmember and staff roles during the meeting. The protocols do outline procedures for the censure of a council member. That can be requested by any councilmember with specific allegations of conduct in violation of federal, state or City ordinances or policies upon which the proposed censure is based.