Steven Madden (born March 23, 1958) is an American
fashion design
Fashion design is the art of applying design, aesthetics, clothing construction, and natural beauty to clothing and its accessories. It is influenced by diverse cultures and different trends and has varied over time and place. "A fashion design ...
er and
businessman
A businessperson, also referred to as a businessman or businesswoman, is an individual who has founded, owns, or holds shares in (including as an angel investor) a private-sector company. A businessperson undertakes activities (commercial ...
. He is the founder and former
chief executive officer
A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization.
CEOs find roles in variou ...
Far Rockaway, Queens
Far Rockaway is a neighborhood on the eastern part of the Rockaway peninsula in the New York City borough of Queens. It is the easternmost section of the Rockaways. The neighborhood extends from Beach 32nd Street east to the Nassau County li ...
, the son of a
Jewish
Jews (, , ), or the Jewish people, are an ethnoreligious group and nation, originating from the Israelites of History of ancient Israel and Judah, ancient Israel and Judah. They also traditionally adhere to Judaism. Jewish ethnicity, rel ...
Catholic
The Catholic Church (), also known as the Roman Catholic Church, is the List of Christian denominations by number of members, largest Christian church, with 1.27 to 1.41 billion baptized Catholics Catholic Church by country, worldwid ...
father. He grew up in adjoining Lawrence and graduated from the local high school in
Nassau County, New York
Nassau County ( ) is a suburban County (United States), county located on Long Island, immediately to the east of New York City, bordering the Long Island Sound on the north and the open Atlantic Ocean to the south. As of the 2020 United St ...
. After high school, Madden studied at the
University of Miami
The University of Miami (UM, UMiami, Miami, U of M, and The U) is a private university, private research university in Coral Gables, Florida, United States. , the university enrolled 19,852 students in two colleges and ten schools across over ...
for two years before returning to Long Island. The youngest of three brothers, he started Steve Madden, Ltd. with $1,100 in 1990 by selling shoes out of the trunk of his car.
Criminal conviction
Madden's financial affairs were closely entangled with Long Island "
pump and dump
Pump and dump (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements (pump), in order to sell the cheaply purchased stock at a higher price (dump). O ...
" brokerage house Stratton Oakmont, cofounded by Madden's childhood friend Danny Porush, who first lent him money to expand his fledgling company, and then underwrote its
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
.
In June 2000, a
class action
A class action is a form of lawsuit.
Class Action may also refer to:
* ''Class Action'' (film), 1991, starring Gene Hackman and Mary Elizabeth Mastrantonio
* Class Action (band), a garage house band
* "Class Action" (''Teenage Robot''), a 2002 e ...
lawsuit was filed against Madden for issuing materially false and misleading statements during the Class Period. A settlement of $9 million was reached in 2004.
In 2001, the SEC filed charges against Madden in Federal Court in New York state, alleging SEC violations. Because the violations were not criminal in nature, the SEC was seeking to recover $1,637,000 in a combination of illegally avoided losses, interest, and a civil penalty.
In 2002, Madden was convicted of
stock manipulation
In economics and finance, market manipulation occurs when someone intentionally alters the supply or demand of a security to influence its price. This can involve spreading misleading information, executing misleading trades, or manipulating ...
, money laundering, and
securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information. Shortly after resigning as CEO, Madden set himself up as a creative consultant with Steven Madden, Ltd., a position for which he drew $700,000 annually even when he was in prison.
Madden served time in the Federal Prison Camp, Eglin, at
Eglin Air Force Base
Eglin Air Force Base is a United States Air Force (USAF) base in the western Florida panhandle, located about southwest of Valparaiso, Florida, Valparaiso in Okaloosa County, Florida, Okaloosa County.
The host unit at Eglin is the 96th Test ...
Ocala, Florida
Ocala ( ) is a city in and the county seat of Marion County, Florida, United States. Located in North Central Florida, the city's population was 63,591 as of the 2020 United States census, 2020 census, up from 56,315 at the 2010 census and making ...
. Madden was released from prison in April 2005. He then attended a
New York City
New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
halfway house
A halfway house is a type of prison or institute intended to teach (or reteach) the necessary skills for people to re-integrate into society and better support and care for themselves. Halfway houses are typically either state sponsored for those ...
. Madden's attorney, Joel Winograd, said that Madden would stay at the house for 60 days. After his release from a halfway house, he was restricted to home confinement for a period.
Post-release
Since Madden was released from prison in 2005, the company quickly rebounded, increasing revenue by nearly $100 million in 2006 to $475.1 million. That same year, Steven Madden, Ltd. was named 'Company of the Year' for the second time at the Footwear News Achievement Awards.
With Madden currently serving as the founder and design chief, the company continues to show growth year-over-year reporting $1.9 billion in revenue for FY2021.
Madden contributed to The Doe Fund, a charity devoted to working on the causes of homelessness, addiction, and criminal recidivism.
In popular culture
Steve Madden (played by Jake Hoffman) is featured in
Martin Scorsese
Martin Charles Scorsese ( , ; born November17, 1942) is an American filmmaker. One of the major figures of the New Hollywood era, he has received List of awards and nominations received by Martin Scorsese, many accolades, including an Academ ...
's film '' The Wolf of Wall Street'', which is based on Jordan Belfort's memoir of the same name. In the film, Madden is seen visiting Stratton Oakmont, where Belfort gives the brokers a rousing pep talk about pushing Madden's stock.
Personal life
Madden admits to having abused alcohol and various drugs, and later attended court-ordered rehabilitation.
Madden married Wendy Ballew, his former director of operations, in 2005 after he was released from prison. The couple have three children, twins Jack and Stevie Madden, and Goldie Ryan Madden. The couple divorced in 2015.
Awards and honors
*Footwear News Achievement Award Hall of Fame (December 2019)
*Footwear News Reader's Choice: Person of the Year Award (December 2011)
*
NASDAQ
The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...
Honors Steve Madden & 20 Year Anniversary (June 2010)
*Two Ten Foundation Honors Steve Madden (June 2010)