UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17015 / May 23, 2001
SECURITIES AND EXCHANGE COMMISSION V. STEVE MADDEN, 01-CV-3311(JG)(E.D.N.Y.)
On May 23, 2001, the Securities and Exchange Commission filed a complaint in the United States District Court for the Eastern District of New York alleging illegal insider trading by shoe designer, Steven Madden (Madden). The Commission's complaint alleges that on May 31, 2000, Madden, a resident of New York, NY, violated Section 17(a) of the Securities Act of 1933 (Securities Act), and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, when he sold 100,000 shares of common stock in Steven Madden Ltd (SHOO) while in possession of material, non-public information.
Madden, without admitting or denying the Commission's allegations, has consented to the relief sought in the Commission's complaint. In his consent, he has agreed to disgorge $784,000 of illegally avoided losses plus $69,015.84 in prejudgment interest, and to pay an additional $784,000 civil penalty. Madden has also consented to the entry of a permanent injunction from future violations of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
Specifically, the Commission's Complaint alleges:
The Commission acknowledges the assistance of the United States Attorney's Offices for the Eastern District of New York and the Southern District of New York in the investigation of this matter.