According to prosecutors, the trader ran the scheme, which targeted a number of financial institutions including Bank of America, Citigroup and HSBC.
He pleaded guilty to the charges of wire fraud in relation to loan transactions and bank fraud earlier in the year.
Mr Nemazee persuaded banks to lend him large sums by using forged documents and signatures to show he had enough assets to guarantee the loans.
Judge Stein sentenced the former banking executive to jail and ordered him to repay the $292 million he illicitly stole from the institutions.
The judge, who was quoted by Bloomberg, said: âYou know exactly what you have done. I donât think there is any fooling yourself by yourself. You have done a great deal of good in your life.
â[However] this crime is breathtaking in its brazenness and scope,â he added.
Previously, Mr Nemazee undertook fundraising work on behalf of a number of Democrat politicians including Bill Clinton and Barack Obama.
By Jim Ottewill