NEW YORK--A wealthy businessman who raised money for leading Democratic Party politicians, including Barack Obama and Hillary Clinton, pleaded guilty on Thursday to defrauding three major banks out of $292.2 million in loan transactions.

Hassan Nemazee, 60, who once ran a private equity firm, admitted in Manhattan federal court to defrauding Bank of America Corp of more than $142 million, Citigroup Inc of $74.9 million and HSBC Holdings Plc of $74.9 million to pay his debt to Citigroup.

During the plea proceeding, Iranian-born Nemasee, who owned several multimillion dollar properties and had interests in various companies and hedge funds, said he had tried to get out of financial difficulty starting in the 1990s. "It was my intention to repay but the hole that I dug was larger and I borrowed more," said the gray-haired, dapper Nemazee, who appeared embarrassed and contrite.

"I am deeply ashamed of my conduct, for the harm that I inflicted on the banks and most especially my family," he told U.S. District Judge Sidney Stein in a sombre voice as family members sat in court.

Nemazee, a former member of the board of the Iranian American Political Action Committee, was a U.S. citizen whose family left Iran after the revolution there in 1979. The committee contributes to candidates for public office in the United States regardless of party affiliation and works to support Iranian American candidates and issues important to that community, such as immigration.

Nemazee admitted to three charges of bank fraud and one charge of wire fraud. Prosecutors said he had obtained hundreds of millions of dollars in loans from the banks and used fake documents to show supposed ownership of collateral.

Nemazee was listed as one of the top "bundlers" of contributions to Obama's 2008 presidential campaign, according to OpenSecrets.org, a website run by the Center for Responsive Politics. He typically donated more than $100,000 annually to Democratic Party political candidates, including Obama and now-U.S. Secretary of State Hillary Clinton.

Nemazee faces forfeiture of $292.2 million and restitution of $217.3 million. He agreed to forfeit interests in properties, corporate entities, hedge funds, securities accounts, bank accounts, a 2008 Maserati Quattroporte and a 2007 Cessna aircraft.

The judge allowed Nemazee to remain free on $25 million bail but under house arrest with electronic monitoring in his Manhattan apartment.