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.

Son of fraudster Bernie Madoff is found hanged Show all 2 1 /2 Son of fraudster Bernie Madoff is found hanged Son of fraudster Bernie Madoff is found hanged The body of Mark Madoff taken from his flat yesterday AFP/ GETTY IMAGES Son of fraudster Bernie Madoff is found hanged Mark Madoff and his disgraced father Bernie AP/ EPA

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”.