Jail Over, A Designer Steps Up

Chastened by a 31-month prison stint, STEVE MADDEN returns to the scene - with new footwear, a new fiancé and some hard-earned wisdom.

  As the founder of a $338 million shoe empire, Steve Madden had grown accustomed to traveling in style, whether jetting to the famed golf course at Pebble Beach or to his stores in Miami. But the private plane he boarded on Sept. 18, 2002, was for a trip Madden wished he didn't have to take: After pleading guilty to two counts of securities fraud and money laundering, the shoe designer was off to a Florida correctional facility, where he would spend the next 31 months locked up. "It was unbelievably mind-blowing," says Madden, who was also ordered to pay $5 million in restitution. "I checked myself in, and the next day, I was cleaning bathrooms and picking up cigarette butts out in the rain."

  As humbling as the experience may have been - Madden's prison job was to operate and repair the sprinkler system, and he slept in a cubicle with another inmate - Madden says it also gave him "a lot of time to think" about what had led him, back in '94 and '95, to get involved with two brokerage firms in manipulating IPO prices. "Fear of losing my talent, letting my family down and greed - that's how I got in trouble," he says, "I regret the mistakes I made and I don't blame anybody else. I took responsibility and did my time like a man."

   Now Madden, 48, who was released from prison last April, is working to rehabilitate his reputation as the driven head of Steve Madden Ltd., which he founded in '90 with $1,100. The company itself wasn't implicated in the scandal and continued to thrive during Madden's incarceration, expanding to 93 stores and beating out Nike and Adidas as favorite footwear among 12- to 29-year-olds in a recent survey. "I don't think Steve Madden the person is as important as Steve Madden the brand," says consumer expert Michael Berland, who conducted the poll. "That there is Steve Madden would be a real shock to some people."

   There is, of course, and while he was out, his moderately priced label continued to tempt both celebs (Beyonce, Hilary Duff) and less affluent shoppers with stylish shoes. (Some critics charged they were akin to knockoffs.) "Not everyone can buy Chloe," says Carmen Electra, who owns Madden gold flats. "But you can get the closest thing at Steve Madden."

   For his part, Madden, who was allowed to receive his $700,000 salary throughout because his crimes didn’t involve his company, says he "wasn't that interested in shoes while I was away." What he did miss was "being able to take a shower without shower shoes, walking down the street on a fall day in Manhattan, Getting up in the morning and reading the newspaper."

   He found some solace in reading books, from David McCollough's bio of John Adams to The Devil Wears Prada - and from a course he taught fellow inmates about how to start a business. He says he also "got in touch with the prayer thing." Madden, who says he used alcohol and drugs in the '80s and relapsed during his legal troubles, also underwent court-ordered rehab. Sobriety, he says, "is not a struggle, but it's not something I take lightly."

  If there was an upside to his forced time off, it was that Madden, who says he used to "work seven days a week and sneak a round of golf in," fell in love. Wendy Ballew, 34, his Director of Operations who says she used to view Madden "like a brother," visited him often in the prison. They would talk, watched by guards, in the cafeteria and, recalls Madden, "I would hold her hand. [One day] I kissed her. Obviously there was no sexual intimacy until I came home, but it was very romantic."

   Two months before his release. Madden proposed, and he spent his first weekend as a free man with Ballew in Montauk, shopping and enjoying a spa. "It was just so nice," she says, "being out."

   No doubt her fiancé would agree. But Madden isn't trying to forget the past three years entirely. Faced with challenges now, Madden says he thinks back to prison. "There's a quote from Winston Churchill I put up on the wall," he says, " 'If you're going through hell, keep going.' That's what I've done. I've kept going."

Comments

[Bianca Weaver]

WOW!! I never even knew all that. It's all so cool! The experiences life can give you. I'm amazed at how ou've you taken all well. Although I can imagine that it takes alot. Strength and courage. But you keep going this is only the beginning. I admire you for stepping up and admitting everything and taking responsibility like a man. As for your love life i'm so very happy for you two. You really do, do such a great job. I love your line of shoes. They really are my favorite. When I see a new shoe that I want I literally go nuts until I find them at the stores. I search each store and I just about scream each time I find them. I remember that my husband and i would always argue cause I wanted your shoes all the time and he would always say NO NO NO you're not getting them but I always bought them. I just felt so happy and just also so sexy and cute when i wear them. They are all worth it. Each and every pair. You're so great... I wear your shoes to anything and everywhere. They're the best. I wish you the best of luck in everything. By the way great quote you gave me some great inspiration.

[debbie kulich]

Hi, I heard alot of things about steve madden but I didnt know that, I think thats good how you told people the truth and I hope everything goes good for you good luck. I love the steve Madden shoes, but for thought Im 5'10 and usually love the high heels but busy as a wife and mother of a 3yr old, I would love to see a lower heel (maybe 2-21/2 inch heels) I like the thin heel style and love anything with sparkles.thank you for letting customers write comments,and keep up the--kool style of Steve Madden Collection. Debbie

[Sarah Marie]

Oh my gosh! I had no idea. I love Steve Madden shoes. I collect all of them. People think I am totally nuts, but oh well. I have the cutest, sexist feet in Cali. That is so crazy! I can't believe Steve went to prison. Don't worry, happens to the best of us. Good luck to Steve, I love you and the shoes. How do you come up with all those great ideas for them. I buy a pair and think to myself, "How the hell can he make a cuter shoe?" And then he surprises me like always. Best of luck to you and your family and have a wonderful holiday season.

[Alecia]

I have worked for Steve Madden for over three years now, pretty much the entire time Steve has been in jail. It is an amazing company that has become more like a family to me (and of course-- I love the shoes!!!). Hopefully Steve comes to Arizona so I can finally say hello...and get an autographed pair of shoes!

[Lan]

i didnt know you had a past like that. but its great that you cleared it up through a blog online. i think that we need more comapnies like this. who interact with their customers. i have a million pair of steve madden shoes...heheh i love it.. as long as you learned from your mistakes and want to make your life bright again then dont live life like in the past.

[Marisa A]

I'm a senior in college and I'm actually writing an Advertisement Plan for Steve Madden, Inc. right now (due Thursday), and a Strategic Management paper on it as well, so I feel like I can practically write this blog myself! It think having a blog is a great idea, and gives us the chance to interact with the company/other consumers. I'll be sure to check in on it in the future!

I never knew how successful the company was, or that Steve Madden was in prison, until I did all of this research. I've been viewing the site pretty often lately, and I noticed the change in design...it's a lot cleaner, but I think the old one represented the company's image better.

[Kym C]

You go,Steve!..Great inspiration for someone;like myself,who hasn't led a mistake-free life...Love the quote on the home page regarding design school...Desire and determination oughta count for something!...Love your stuff..Welcome Back !!!

[Alex N.]

Steve is a crazy guy, but that's what I like about him. He has a brilliant business sense and loves what he is doing--shoes. This securities fraud nonsense really upsets me--31 months in prison for that? There are hundreds of politicians and business men who commit much bigger crimes and walk away with a slap on their wrist. Way to go Steve!

[courtney nguyen]

I luv Steve Madden's shoes design and godly talent. I get tons of compliments on my Steve shoes, heck I'm a walking advertisement! I'm 4'11 and wanted to know if he'll consider creating platform pumps, boots, dress ect.(5-6 inch)to add to my collection. All I own are your shoes and stripper shoes. I'm so embarass to have the stripper shoes, but they make the 5,6,7 inch heels. Steve shoes are the next closes ones. The days/nights that I do not strut Steve shoes, I do not want to be mistaken as a dancer. I just want to holla at Steve, "I luv U Man!". Peace Out! Courtney

[G.C.]

I remember hearing about the jail "stint." I love Steve Madden shoes--my first pair was a leather loafter with a clunky heel that I bought in fall of '97 and I STILL wear them! I have also bought many subsequent pairs (mostly casual sneakers as my feet can not do pointy toes or spiky heels :) ). Welcome back!

[Bren]

I am upset to see that the Strive shoes have gone up in price. I understand there is a demand for them, but taking advantage of this and charging more for the shoes to the customers is very devious. I've been checking and checking to see if more were available and trying to save my money to buy the $160something shoes, and when I checked today, they are now $260! Wow steve madden. I am truly dissapointed.
Bren

P.S. Sorry, I had to post my comment in this section but everytime I emailed the steve madden customer service to inquire about the strive shoes, no one ever emailed me back.

[Besa]

Hi,

I am also writing to voice my concern over the recent price increases of the shoes on your website.

The reason why your company is so popular with people between the ages of 18-29 is that, not only do your products offer style, but they offer it at a sensible price. Most people in that age group (myself including) cannot spend a great amount on one pair of shoes. However, your recent price increases do not reflect sensible pricing.

Also, in your reply to Bren you say that you offered the shoes at a sale price for the first few days of December and then, realizing the demand, decided to hike them up to regular price. It strikes me as odd that the prices of the shoes were not marked as on sale. That way I would have known to buy the boulder style boots at the price of $99 instead of $215, or as you have now lowered it, at $175. Even more unfair is that your stores have continued to sell them at the lower prices. So the high prices are only for those of us who do not live near a Steve Madden store. I am not sure why your company has decided to offer this special advantage to those customers who live near a Steve Madden store.

As a true of fan of your company and the products it offers, I am very disappointed with the recent developments.

[Alexandria Kadyn]

Oh my gosh I love Steve Madden shoes!!!! My friends and I always have contests to see who has the most pairs! Shallow I know but we really love them, especially all the strappy stilettos. I love ankle straps!!! Anyway Steve I think you're a great designer and I'm glad you're out of prison! Keep on designing! My feet look HOT in your shoes!!!!!

[LOIS]

I love your shoes the only concern me and All my girlfriends have is that you don't make your boots to fit the calfs of alot of women...your losing an entire market just based on that part alone. no I'm not fat or out of shape if your wondering that neither or any of my friends but we all have had the same issue with your boots!!...recently a friend and i both were at the local mall prepared to spend almost $400.00 to buy your boot called HIP HOP...but we couldnt get the boot zipped up our legs....WHAT'S UP WITH THAT HUH!!

STEVEN?

other-wise you rock man!!..I LOVE YOUR SHOES AND STYLES!!!

[lainoc58]

I have $100.00 that I want to GIVE you for a pair of shoes but can't because your salespeople are lame! It's really too bad. I loved the shoe, "Paulene" yet the first time I saw the shoe was right before Christmas and I didn't have the money to spend. Fortunately, I received some money for Christmas and the day after Christmas I braved the madness at the mall and went back to the store, specifically to buy those shoes. Once I got to the store, imagine my disappointment when the salesgirl told me they were out of my size (size 7) and they were too busy to check other stores and suggested that I come back the next day. Really wanting those shoes, I went back to the store again the next day and although the store was not busy, all the salesgirl would do for me was to take my name and number and tell me she would call me when she located the shoe in my size. I've never heard from her. I'm frustrated and disallusioned. Is there anyway you can help? I really want those shoes and I HAVE the money to spend. Can you help or should I just go ahead and go elsewhere to find a similar pair of shoes.

[Noah Jacobs]

Great shoes... and great story. Way to go Steve for getting thru those crazy times.

Why not move your head-office up to Montreal Canada, and get away from those crazy USA law-makers. Here in Canada anything goes, and Montreal has the best fashion taste this side of the Atlantic.

All the best
NJ

[LaSonya Stewart]

Yes the price increase was new to me it seemed unethical I even called customer service, but please reissue the "Strive" shoe at your normal reasonable price, I was out of the U.S when they were launched and I am very upset....Please Help!You only have "bigfoot" sizes left and no one care that he went to jail, all businesses walk a line on ethics its obvious he has paid his debt, just re- release the "Strive" shoes and we will still love you!!!!

[Chris Everhardt]

I see more and more Madden shoes in the sale bin. That's where they belong.

[Shannon]

Paris Hilton looks ugly in that shoes! Id rather watch Beyonce in her house of dereon fleur de lis hoodie. take a look at this, http://www.beyoncehouseofdereonclothingline.com She's hotter than paris Hilton.

[clarissa]

Shoes are okay. Wife is homely. What's up wit that?

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[selva]

wow this shoe suets well to this girl...It gives new fashion for this girl.I think this will suets me too,and i too try my new fashion ......

[FreeStoring]

hay!!
good project :)
senks :)

[Michelle U]

Hi Steve,

98% of my shoes are steve madden.The most comfortable and stylish put together. I have two kids,a 6 and 7 year old and have no problems keeping up with them in the park or walking the mall in your wedge platform sandals.

My favorite style from you are any of the leather with cork or raffia wedge sandals,mostly with ankle straps.PLEASE NEVER get rid of them.I'm finding it harder to come across these styles in stores by me like macys etc.

I thought it was really funny when my 6 year old son tripped over one of my shoes on the floor and said my steve maddens tripped him LOL. He must think any cute sandal is a "steve madden" AWESOME!!