Hassan Nemazee, a former political fundraiser in New York, has been sentenced to 144 months in prison for defrauding Bank of America, Citibank and HSBC Bank USA out of $292 million in loan proceeds.

According to a statement from the US Department of Justice, Nemazee misrepresented to the banks involved that he owned hundreds of millions of dollars in collateral to obtain a similar amount in loans. The collateral reportedly did not exist and Nemazee used fake documents and bogus statements of account to prove his ownership. The documents also contained fake telephone numbers and forged signatures of key persons from Westminster Securities Corporation and Pershing.

The loans were obtained between 1998 and 2009. It was not until August last year when Citibank had begun to question the existence of Nemazee's collateral. By then, he already owed the bank $74.9 million and BofA $142 million. To pacify the inquiry, Nemazee drew down on a line of credit that he fraudulently obtained from HSBC in early 2009 to pay Citibank what he owed.

The elaborate banking fraud scheme is one among the many Nemazee orchestrated while he was still an active fundraiser for top New York politicians, which allowed him to enjoy a highly luxurious lifestyle to maintain social standing. His brother in law, Shahin Kashanchi, is also separately charged with aiding and abetting Nemazee's fraud by manufacturing the fake papers. His case is pending in the Manhattan federal court.

"For over a decade, Hassan Nemazee authored a fantastic fiction, stealing $292 million by acting the part of wealthy and influential power broker," said US Attorney for the Southern District of New York Preet Bharara.

"In the end, justice is blind to political affiliations and powerful connections, and today, like any other defendant, Nemazee faces the stark consequences of his decision to violate the law."

In addition to the prison term, US District Judge Sidney H Stein ordered Nemazee to pay restitution of more than $292 million to the defrauded banks; to forfeit various real properties, corporate entities, hedge funds, securities accounts and bank accounts; and to serve three years of supervised release.