By Cris Alarcon, InEDC Writer. (Oct 18, 2025) – [DISCLOSURE: I was the B.O.D. Treasurer for the Boys & Girls Club located in Placerville during the time Duane Wallace was the E.D.]
SOUTH LAKE TAHOE, Calif. — Duane Wallace, a longtime South Lake Tahoe business and civic leader, has stepped back from leadership duties at the South Tahoe Chamber of Commerce as his family navigates the fallout from Mayor Tamara Wallace’s recent admission of embezzlement and her subsequent resignation.
The Chamber’s statement announcing the leadership change said Wallace was stepping back
“to focus on family”
and praised his long service.
“Duane’s leadership helped define what it means to serve this community with integrity and vision,”
Chamber President Brandi Bannister said in the organization’s release.
What happened and the timeline
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Oct. 5–10, 2025: Mayor Tamara Wallace sent an open letter to local media admitting she “took funds from the Presbyterian Church over an extended period,” disclosed a suicide attempt and described an 18-day stay in a mental-health facility. In the letter she said she planned to repay the money and accept legal consequences.
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Oct. 13–14, 2025: Wallace submitted her resignation as mayor via email to city officials, effective immediately, triggering a criminal investigation by the El Dorado County District Attorney’s office. Local outlets report the church and its counsel assert that more than $300,000 is missing.
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Oct. 17, 2025: The South Tahoe Chamber issued a press release announcing a leadership transition after Duane Wallace “stepped back to focus on family.” The Chamber framed the move as part of a “new chapter” while reaffirming its mission to support local businesses.
Who is Duane Wallace
Duane Wallace has a long record of civic and business involvement in the Tahoe basin. His official Chamber biography lists a decades-long presence in the community — he moved to Tahoe in 1974, ran local restaurants, served multiple years as CEO/executive director of the South Lake Tahoe Chamber and previously served as executive director of the Boys & Girls Clubs of El Dorado County — Western Slope. He was also appointed to the South Tahoe Public Utility District board to fill a vacant seat and has been active on regional boards for years.
Local impact and reactions
City officials and residents reacted with concern as the city’s two top elected officials — Mayor Wallace and Mayor Pro Tem Cody Bass, who faces separate misdemeanor charges from an unrelated incident — found themselves at the center of overlapping controversies. The mayor’s resignation creates immediate questions about council leadership, committee assignments and representation on regional boards. The city council is expected to address vacancies and next steps at its upcoming meeting.
“The Chamber remains focused on unity, transparency and action,” the Chamber release stated, while acknowledging the leadership transition and thanking Wallace for “tireless service” to the business community.
Legal and procedural notes
The El Dorado County District Attorney’s office confirmed it is reviewing the matter; the scope and timing of any potential criminal charges remain subject to that investigation. Court and insurance records cited by regional reporting show prior civil litigation tied to alleged financial misconduct by Tamara Wallace dating back years, complicating the local narrative and prompting sharper scrutiny by community members and legal observers.
Why this matters to El Dorado County readers
South Lake Tahoe’s governance and business leadership affect everything from regional tourism promotion to emergency response coordination, interagency partnerships and grant-funded projects. A leadership shakeup at the Chamber and a sudden mayoral resignation mean decisions on events, marketing and interjurisdictional partnerships will be watched closely by businesses, nonprofits and county officials alike.
What to watch next
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City Council agendas and official statements from South Lake Tahoe City government on filling the mayoral vacancy.
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Any formal announcements from the South Tahoe Chamber about an interim chief executive or organizational succession plan.
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Updates from the El Dorado County District Attorney on the criminal investigation into the church’s missing funds.
Selected sources
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South Tahoe Chamber — Duane Wallace bio and Chamber statement.
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Tahoe Daily Tribune — Chamber transition and Tamara Wallace resignation coverage.
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San Francisco Chronicle & SFGate — reporting on Tamara Wallace’s confession, health disclosure and prior legal records.
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KUNR and KCRA — local public radio and TV reports on leadership fallout and investigation.
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Guidestar / nonprofit filings — Duane Wallace’s previous role with Boys & Girls Club (Western Slope).
