Opinion ID: 1135256
Heading Depth: 2
Heading Rank: 3

Heading: Participation in the scheme

Text: Allum alleged that VMC violated NRS 207.400(1)(g), which provides that it is unlawful for any person to intentionally promote or further the criminal objectives of a criminal syndicate by inducing the commission of an act or the omission of an act by a public officer o[r] employee which violates his public duty. Allum claims that his post as an FHA underwriter qualified him as a public officer and that notwithstanding the fact that he participated in the scheme by underwriting the D.E. Program loans, he has standing under Nevada RICO to sue those who induced him to violate his public duty. We need not decide whether Allum was a public officer because his participation in the illegal scheme, even though perhaps against his will, precludes him from recovering for damages caused by the scheme. We find the reasoning of the district court persuasive: [T]he implication of Plaintiff's argument is that our legislature intended that a public official or employee who is induced to violate his or her official duties should be permitted to recover treble damages from the persons inducing the violation. The Court does not accept this argument. Rather, for purposes of NRS 207.400(1)(g), the civil remedy afforded by NRS 207.470(1) is available to those persons who suffer injury in their business or person as a result of the official's violation of his duties. The civil remedy provision in NRS 207.470(1) is not available to the official who violates his or her official duties. We doubt that the legislature intended for one knowingly involved in an illegal scheme to be able to recover from the scheme's other participants. Because Allum participated in the illegal scheme by virtue of his underwriting, we conclude that he cannot rely on Nevada RICO to recover treble damages from VMC. Allum argues on appeal that the district court erred by dismissing his claim with prejudice. A district court's decision not to grant leave to amend will not be disturbed absent an abuse of discretion. Nelson v. Sierra Constr. Corp., 77 Nev. 334, 343, 364 P.2d 402, 406 (1961). Any attempt by Allum to amend his Nevada RICO claim would have been futile: It is not an abuse of discretion to deny leave to amend when any proposed amendment would be futile. Reddy, 912 F.2d at 296. We affirm the judgment of the district court.