Nemazee, 60, pleaded guilty on March 18 to three counts of bank fraud and one count of wire fraud in connection with loan transactions involving Bank of America Corp, Citigroup Inc and HSBC Holdings Plc.
He also agreed to forfeit his interests in property and accounts, including a 2007 Cessna aircraft and 2008 Maserati.
In a Wednesday evening court filing, U.S. Attorney Preet Bharara in New York said a 188- to 235-month prison term is appropriate, reflecting federal sentencing guidelines.
Sentencing is scheduled for June 30 before U.S. District Judge Sidney Stein in Manhattan.
Paul Shechtman, a lawyer for Nemazee, did not immediately return a call on Thursday seeking comment.
Bharara cited several factors justifying the proposed sentence. These included the 12-year time period for the fraud, the size of the losses, and Nemazee's use of the stolen money to fund "an extremely lavish lifestyle" and also "to build up his reputation, including as a political kingmaker."
Nemazee was one of the top "bundlers" of contributions to Obama's 2008 presidential campaign, according to the Center for Responsive Politics' OpenSecrets.org.
He typically donated more than $100,000 annually to Democrats including Clinton, now U.S. secretary of state.
Nemazee is a U.S. citizen whose family left Iran after the 1979 revolution. He had also run Nemazee Capital Corp, a private equity firm.
The case is U.S. v Nemazee, U.S. District Court, Southern District of New York, No. 09-00902.
(Reporting by Jonathan Stempel, editing by Dave Zimmerman) Reuters