FOR IMMEDIATE RELEASE                              2001-53


           FOOTWEAR DESIGNER STEVE MADDEN SETTLES
                      SEC FRAUD CHARGES
                              
        MADDEN BARRED FOR SEVEN YEARS FROM SERVING AS
          OFFICER OR DIRECTOR OF ANY PUBLIC COMPANY

                 MADDEN TO PAY $7.8 MILLION
           IN DISGORGEMENT, INTEREST AND PENALTIES
                              
       SETTLEMENT INCLUDES NEW INSIDER TRADING CHARGES


     Washington, DC, May 23, 2001 -- The Securities and
Exchange Commission today announced a multi-part settlement
of securities fraud charges against Steven Madden, the Chief
Executive Officer of Steven Madden, Ltd. ("SHOO").  The
settlement encompasses market manipulation charges that the
Commission filed against Madden in June 2000, as well as new
insider trading charges filed today.  The insider trading
case is based upon Madden's sale of 100,000 shares of SHOO
stock on May 31, 2000, when he was aware that he would be
indicted or otherwise criminally charged in the manipulation
case.

Today's Settlements

     Under today's settlements, which Madden has entered
without admitting or denying the Commission's allegations,
Madden has agreed to the following relief:

  *  An order barring Madden from serving as an officer or
     director of any public company for seven years;

  *  Total payments of $7,820,465 as follows:

       -  $5,183,450 in disgorgement of ill-gotten gains in the
          manipulation case (subject to offset for restitution
          payments made in the related criminal cases);

       -  $784,000 in disgorgement plus $69,015 in interest in
          the insider trading case;

       -  $1 million civil penalty in the market manipulation
          case;

       -  $784,000 civil penalty in the insider trading case; and

  *  Injunctions against future violations.

June 2000 Manipulation Case

     In its Complaint filed June 20, 2000, the Commission
alleged as follows:

     From 1991 through 1997, Madden was a key participant in
a series of manipulations orchestrated by Stratton Oakmont,
Inc. and Monroe Parker Securities, Inc.  Both firms were
quintessential "boiler rooms" and the manipulations followed
a standard formula.  Stratton and Monroe gained control over
the float of each stock by issuing allocations of IPO stock
to persons with whom Stratton and Monroe had entered into
secret agreements to serve as "flippers."  The flippers
received their stock with the understanding that they would
sell the stock back to Stratton or Monroe at pre-arranged
prices once trading had commenced in the aftermarket.
Stratton and Monroe would then reap huge profits by selling
the stock to their own customers at artificially inflated
prices created by the use of high-pressure sales tactics.

     In each of 22 manipulations, Madden served as a
"flipper," sold his stock back to Stratton and Monroe and
retained an agreed-upon profit for the transaction.
Stratton also conducted the IPO for SHOO in December 1993.
Stratton, with Madden's knowledge and participation,
manipulated this IPO as well.

Newly Filed Insider Trading Case

     The Commission's new Complaint filed today alleges:

  *  On December 20, 1999, Madden and his attorneys met with
     representatives of the U.S. Attorney's Offices for the
     Eastern District (USAO-EDNY) and the Southern District (USAO-
     SDNY) of New York and the Federal Bureau of Investigation.
     During the meeting, Madden was informed that:  (a) he had
     been the target of USAO-EDNY and USAO-SDNY investigations
     into Madden's participation in stock manipulations at
     Stratton Oakmont and Monroe Parker; and (b) he would be
     indicted or otherwise charged with securities fraud.  Madden
     was also told that the principals of both Stratton Oakmont
     and Monroe Parker were cooperating with the government and
     would testify against him.
       
  *  On May 31, 2000, Madden sold 100,000 shares of SHOO
     common stock at $16.00 per share without disclosing to the
     public the information he had learned on December 20, 1999.
     On June 20, 2000, Madden was arrested and charged with,
     among other things, conspiracy to commit securities fraud
     and securities fraud.
       
  *  When the news of Madden's arrest became public on June
     20, 2000, the National Association of Securities Dealers
     suspended trading in SHOO stock.  When trading resumed on
     June 22, 2000, SHOO's share price, which had closed at
     $13.13 on June 19, 2000, fell as low as $5.50 before closing
     at $6.69.  By selling his stock on May 31, 2000, Madden
     illegally avoided losses of $784,000.


               *              *              *

     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 this
matter.


Persons             Wayne M. Carlin
to contact:         (212) 748-8035
                    
                    Barry W. Rashkover
                    (212) 748-8186
                    
                    Mark K. Schonfeld
                    (212) 748-8178

     
     
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