On Monday, Charles Murphy, whose investment fund had purchased $7 billion worth of securities offered by convicted swindler Bernie Madoff's firm, was reported by CNBC to have taken his own life, jumping from the 24th floor of the Sofitel building in New York City. The 56-year-old was said to have landed on a "fourth-floor terrace." His suicide is thought to be the fourth connected to the Madoff debacle.
In 2007, The Observer reported that Mr. Murphy had purchased a less-than-26-foot-wide "mansion" for $33 million, said to have been a record at the time.
The residence reportedly included eight fireplaces and an elevator. After being listed for $49.5 million in 2016, the asking price of Murphy's East 67th Street home had recently dropped to $33 million.
Madoff spent clients' money instead of investing it
Bernard Madoff is currently serving a 150-year sentence at the Butner Correctional Complex in North Carolina. The New York Post reports that restitution of $170 billion, that will almost certainly never be paid, was demanded by prosecutors. Investopedia describes a Ponzi scheme as one that "generates returns for older investors by acquiring new investors." Madoff simply made up statements, spent his clients' money, and used money from new investors to pay those who wished to cash out.
Madoff once boasted a net worth of $65 billion, with a lifestyle that included homes in New York, Palm Beach, the French Riviera, and Montauk; a stake in a $12 million jet; $2.6 million of jewelry; and a $39,000 piano. In 2010, Madoff's son, Mark, was reported by the New York Post to have taken his own life, apparently "unable to stand another day of his soured life."
Rumors of financial problems
CNBC reports that observers of Charles Murphy had speculated with regard to financial problems he and his wife, Annabelle, were having.
Ms. Murphy was said to have been involved in a car accident that a parking attendant observed resulted in the couple's car being left unrepaired. Morgan Stanley (NYSE: MS), Credit Suisse Group AG (NYSE: CS), and Deutsche Bank AG (NYSE: DB) were said to be among firms Murphy had worked with, last being employed with John Paulson at his Paulson & Co.
hedge fund.
"We are extremely saddened by this news. Charles was an extremely gifted and brilliant man, a great partner and a true friend," Mr. Paulson was quoted by CNBC. "Our deepest prayers are with his family."
