Steve Madden

Steve Madden
Born
Steven Madden

(1958-03-23) March 23, 1958 (age 66)
Queens, New York, U.S.
Occupations
LabelSteve Madden
Spouse
Wendy Ballew
​
​
(m. 2005; div. 2015)​
Children3

Steven Madden (born March 23, 1958)[1] is an American fashion designer and businessman. He is the founder and former chief executive officer of Steven Madden, Ltd., a publicly traded company. He was forced to resign as an executive following a conviction for financial crimes.

Life and career

Madden was born in Far Rockaway, Queens, the son of a Jewish mother and an Irish Catholic father.[2] He grew up in adjoining Lawrence and graduated from the local high school[3][4] in Nassau County, New York.[5] After high school, Madden studied at the University of Miami for two years before returning to Long Island. The youngest of three brothers, he started Steven Madden, Ltd. with $1,100 in 1990 by selling shoes out of the trunk of his car.[1][6]

Criminal conviction

Madden's financial affairs were closely entangled with Long Island "pump and dump" 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.

In June 2000, a class action lawsuit was filed against Madden for issuing materially false and misleading statements during the Class Period.[7] A settlement of $9 million was reached in 2004.[8] In 2001, the SEC filed charges against Madden in Federal Court in New York state, alleging SEC violations.[9] 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, money laundering, and securities fraud. He was sentenced to 41 months in prison, and was made to resign as CEO from Steven Madden, Ltd. and from the board of directors.[10] 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.[10]

Madden served time in the Federal Prison Camp, Eglin, at Eglin Air Force Base, and later the Coleman Federal Correctional Complex, near Ocala, Florida. Madden was released from prison in April 2005.[11] He then attended a New York City halfway house.[12] Madden's attorney, Joel Winograd, said that Madden would stay at the house for 60 days.[13] After his release from a halfway house, he was restricted to home confinement for a period.[14]

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.[15] That same year, Steven Madden, Ltd. was named 'Company of the Year' for the second time at the Footwear News Achievement Awards.[16]

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.[17]

Madden contributed to The Doe Fund, a charity devoted to working on the causes of homelessness, addiction, and criminal recidivism.[18]

In popular culture

Steve Madden (played by Jake Hoffman) is featured in Martin Scorsese'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.[19]

Personal life

Madden admits to having abused alcohol and various drugs, and later attended court-ordered rehabilitation.[20]

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,[21] and Goldie Ryan Madden.[22] The couple divorced in 2015.

Awards and honors

  • Footwear News Achievement Award Hall of Fame (December 2019)[16]
  • Footwear News Reader's Choice: Person of the Year Award (December 2011)[23]
  • NASDAQ Honors Steve Madden & 20 Year Anniversary (June 2010)[24]
  • Two Ten Foundation Honors Steve Madden (June 2010)[25]

References

  1. ^ a b "Steve Madden | Biography & Facts". Britannica. January 2024.
  2. ^ Berkman, Johanna (February 26, 2001). "Steve Madden: Crisis of the Sole". New York. Retrieved January 11, 2015.
  3. ^ "Steve Madden: Crisis of the Sole". NYMag.com. February 26, 2001.
  4. ^ Lawrence a Winner in NBC Smash Contest Designer Steve Madden also set to match prize. "Lawrence High School will see an infusion of $6,000 to get its Sandy-damaged auditorium in top shape after the school was named one of five grand prize winners in NBC Smash's "Make a Musical" contest, which will be matched by alumnus and fashion designer Steve Madden."
  5. ^ Weisman, Aly (January 14, 2014). "Steve Madden Thought His 'Wolf Of Wall Street' Portrayal Was 'Too Nerdy'". Business Insider. Retrieved January 11, 2015.
  6. ^ Dominguez, Robert (October 19, 2006). "Bringing It Back Home. Steve Madden's new ad campaign focuses on his fashion center - Queens". Daily News. Retrieved January 11, 2015. He grew up in Lawrence, L.I., where he worked in shoe stores from his high-school days until he started his own business in 1990, at 33, with an investment of just $1,100.
  7. ^ "Class Action Against Steve Madden". Archived from the original on October 29, 2013.
  8. ^ "Steven Madden, Ltd. case". Archived from the original on October 29, 2013. Retrieved August 3, 2013.
  9. ^ "Steve Madden: Litigation Release No. 17015 / May 23, 2001". sec.gov.
  10. ^ a b Walker, Rob (April 10, 2002). "Genius of Capitalism: Steve Madden". Slate. Retrieved October 28, 2010.
  11. ^ Setoodeh, Ramin. "Back on His Feet Again." Newsweek. 2007. 1. Retrieved on January 10, 2010.
  12. ^ "Madden Back in NYC After Prison Release". footwearnews.com. April 25, 2005. Retrieved January 10, 2010.
  13. ^ "Steve Madden released from federal prison." Newsday. April 16, 2005. Retrieved on January 10, 2010.
  14. ^ Bonawitz, Amy. "Passages." People. June 27, 2005. Volume 63, No. 25. Retrieved on January 10, 2010.
  15. ^ Ramin, Setoodeh (July 15, 2007). "How Prison Made Steve Madden a Better Man". Newsweek. Retrieved August 22, 2019.
  16. ^ a b Abel, Katie (October 26, 2020). "The Ultimate Shoe Celebration: FNAA Winners From 1986 to 2019". Footwear News. Archived from the original on November 10, 2021. Retrieved June 27, 2022.
  17. ^ "Steve Madden Announces Fourth Quarter and Full Year 2021 Results". GlobeNewswire (Press release). February 24, 2022. Archived from the original on June 7, 2022. Retrieved June 25, 2022.
  18. ^ Allen, Brianna (December 11, 2017). "Ex-Con Shoe Designer Steve Madden Makes It A Point To Employ His Jailmates". BET. Retrieved June 27, 2022.
  19. ^ "Steve Madden Thought His 'Wolf Of Wall Street' Portrayal Was 'Too Nerdy'". Business Insider. January 14, 2014.
  20. ^ Holson, Laura M. (February 13, 2013). "Steve Madden Is Back". The New York Times – via NYTimes.com.
  21. ^ Triggs, Charlotte (October 4, 2007). "Steve Madden, Wife Welcome Twins". People. Retrieved January 11, 2015.
  22. ^ Leon, Anya (March 13, 2013). "Steve Madden Welcomes Daughter Goldie Ryan". People. Retrieved January 11, 2015.
  23. ^ Bell, Jennie (December 19, 2011). "Readers' Choice: Best & Worst of 2011". Footwear News. Archived from the original on May 2, 2016. Retrieved June 25, 2022.
  24. ^ The NASDAQ OMX Group, Inc. (June 14, 2010). "UPDATE -- Steven Madden, Ltd. (SHOO) Chief Executive Officer to Ring the NASDAQ Stock Market Closing Bell". GlobeNewswire News Room (Press release).
  25. ^ "YPfor210 Christmas in June Honoring Steve Madden". Two Ten Footwear Foundation. Archived from the original on December 31, 2013. Retrieved June 6, 2015.
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