Hedge fund executive who lost millions to Bernie Madoff's Ponzi scheme jumps off hotel balcony to his death

Reports said Charles Murphy's family was struggling to pay bills

Madoff was jailed for 150 years in 2009 (Getty)

An investor who reportedly lost millions of dollars in disgraced financier Bernie Madoff’s notorious Ponzi scheme has jumped to his death from a luxury New York hotel.

Reports said Charles Murphy, 56, whose hedge fund invested billions of dollars of clients' money with Madoff, died after stepping from the 24th floor of the Sofitel New York Hotel, located on West 44th Street.

The New York Times reported in 2009 that Mr Murphy’s hedge fund, Fairfield Greenwich Group, invested more than $7bn with Madoff, and lost much of their clients’ money.

Mr Murphy jumped from a New York hotel (New York Daily News ) (New York Daily News)

Fairfield lost nearly $50m when Madoff’s scam imploded. The investors filed a class-action lawsuit and the company agreed to be part of an $80m settlement.

Murphy owned a multi-million limestone town house in the heart of Lenox Hill, located in New York’s Upper East Side.

Mr Murphy had been serving as a partner with the investment management firm Paulson & Co.

The head of the fund, John Paulson, released a statement on Monday night calling Mr Murphy “a brilliant man, a great partner and a true friend”.

In 2009, Madoff pleaded guilty to 11 federal crimes and admitted to turning his wealth management business into a massive Ponzi scheme. He was sentenced to 150 years.