Madden pleads guilty to securities fraud

Wednesday, May 23, 2001 | 11:01 a.m.

NEW YORK -- Shoe designer Steve Madden pleaded guilty today to federal charges of securities fraud and money laundering.

Under a plea agreement, Madden faces prison time of between 41 and 51 months, must forfeit $3 million and pay at least $5.18 million in restitution.

Madden, 44, who announced he was resigning as chief executive of Steven Madden Ltd., will stay on as creative and design chief of the company. Madden is expected to return to the firm upon completion of any time he serves, the company said.

Madden was arrested last June in connection with reaping the benefits of manipulating 22 initial public stock offerings, including the 1993 IPO of his own company.

archive