A former restaurant owner from downtown Palm Springs has agreed to plead guilty to defrauding federal pandemic relief programs out of over $4 million, according to court documents.
Philip Frederick Camino, who once owned Stout Burgers and Beer, filed more than 20 fraudulent applications for loan programs designed to support businesses during the COVID-19 pandemic. The complaint by federal prosecutors details that Camino, along with two co-conspirators, included additional companies in his fraudulent activities and paid one of them a $100,000 kickback.
Prosecutors allege that Camino’s various businesses across California obtained more than $4.1 million in loans. Camino, a Canadian citizen managing multiple companies related to Stout and other ventures, signed an agreement on May 31 stating his intention to plead guilty to conspiracy to commit wire fraud, a felony. He was scheduled for a court appearance on Monday, but no updates were available as of Tuesday afternoon. The Federal Public Defender’s Office, representing Camino, did not respond to requests for comment.
Stout Burgers and Beer, a gourmet burger chain with several California locations, had its Palm Springs franchise in the same building as the Rowan Hotel downtown. According to social media posts, the franchise apparently closed in the fall of 2023. Attempts to reach the owners of what seems to be the last remaining Stout location in Los Angeles were unsuccessful.
The plea agreement outlines a scheme where Camino inflated employee numbers, submitted fictitious federal tax forms, and falsely certified that loan proceeds would be used for permissible business purposes in applications to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. This fraudulent activity spanned about a year, beginning in April 2020.
Both the PPP and EIDL programs were intended to support normal business operations during the pandemic. However, authorities claim that Camino used the majority of the funds for prohibited expenses, without providing specific details.
Camino’s scheme also involved two co-conspirators who used Arizona-based companies for additional loan applications. According to the plea agreement, data compiled by ProPublica shows that Stout Palm Springs LLC, the company associated with Camino’s Palm Springs restaurant, received a $180,260 loan on May 15, 2020. The company claimed the entire amount would be allocated for payroll purposes, as per ProPublica’s records.
Camino faces severe penalties, including a maximum sentence of 20 years imprisonment, followed by a three-year period of supervised release, and a fine of at least $250,000. However, the U.S. Attorney’s Office has recommended a reduced sentence, which could be influenced by various factors, such as Camino’s past criminal history and cooperation with the investigation.
The case against Camino underscores the federal government’s efforts to crack down on fraud related to pandemic relief programs. During the height of the COVID-19 pandemic, the government launched several financial aid initiatives to help businesses survive the economic downturn. Unfortunately, these programs also became targets for fraudulent schemes, prompting increased scrutiny and enforcement by authorities.
Camino’s fraudulent actions not only diverted funds away from legitimate businesses in need but also highlighted vulnerabilities in the administration of emergency relief programs. By pleading guilty, Camino acknowledges his role in the scheme and the misuse of funds intended to support struggling businesses during an unprecedented global crisis.
As the case moves forward, it serves as a stark reminder of the importance of integrity and accountability in accessing government assistance programs. The legal consequences faced by Camino and his co-conspirators are a testament to the serious ramifications of exploiting financial aid designed to help those genuinely in need.
