Steve Madden, the name synonymous with trendy footwear and a global fashion empire, is a familiar figure in the celebrity world today. Known for his eponymous brand, Steve Madden Ltd., and frequent appearances at high-profile events, Madden’s current image is one of fashion success. However, his past is intertwined with a darker chapter, one that involves stock manipulation and a notorious Wall Street firm: Stratton Oakmont, led by Jordan Belfort, famously known as “The Wolf of Wall Street.”
Steve Madden
Fashion designer Steve Madden, pictured at a public event, built a successful brand after overcoming early career challenges related to his association with Jordan Belfort.
Madden’s connection to Belfort and Stratton Oakmont is a crucial part of the true story behind The Wolf of Wall Street. It began through Madden’s childhood friendship with Danny Porush, Belfort’s right-hand man. As Steve Madden’s shoe company started gaining traction, Porush and Belfort saw a lucrative opportunity. Stratton Oakmont orchestrated the initial public offering (IPO) of Steve Madden Ltd., marking the start of a deeply entangled business relationship between Madden and Belfort. Beyond business, they were known for their shared taste for partying, with Belfort even giving Madden the nickname “the Cobbler.”
Stratton Oakmont, in reality, employed aggressive and often fraudulent tactics to inflate the stock price of Steve Madden Ltd. This manipulation generated substantial profits for both the brokerage firm and Madden himself. Madden was later implicated in these illegal activities, demonstrating a level of complicity in the scheme. However, like many relationships in Belfort’s turbulent life, their partnership eventually deteriorated.
Belfort’s escalating drug use and legal pressures bred paranoia. He began suspecting those around him, including Madden, of betrayal. In his own words, Belfort recounted his suspicion: “The price of Steve Madden Shoes was being dictated by the laws of supply and demand — rising and falling with the fortunes of the company itself, not the fortunes of any particular brokerage firm that was recommending it,” yet, his paranoia led him to believe, “The Cobbler had to be plotting against me.” Belfort’s distorted perception fueled his distrust, even suggesting Madden might think he could get away with double-crossing him due to the potentially damaging nature of their shared secret agreement if exposed.
Jake Hoffman In The Wolf Of Wall Street
Actor Jake Hoffman portrays Steve Madden in a scene from “The Wolf of Wall Street,” the movie depicting the Stratton Oakmont saga.
Steve Madden Ltd. became one of the primary examples of Stratton Oakmont’s market manipulation tactics. Madden was not only aware of this but also allegedly held some of Belfort’s own stock in his name, further deepening their illicit entanglement.
When federal authorities began closing in on Belfort, and he turned informant to lessen his own sentence, Steve Madden was among those implicated by his testimony.
According to a 2014 interview with The Hollywood Reporter, Madden stated, “He ratted me out to save himself.” Reflecting on the experience, Madden added, “But it was a long time ago, and I try not to live in the past. You’ve got to move on, and I have.”
Steve Madden served 31 months in prison for securities fraud and money laundering related to the stock manipulation scheme. Following his release, he returned to his company and dedicated himself to rebuilding his reputation and brand. He successfully transformed Steve Madden Ltd. into a global fashion powerhouse, with retail locations across the United States and in over 55 countries worldwide.
Regarding Martin Scorsese’s film adaptation, and Jake Hoffman’s portrayal of him, Steve Madden’s primary critique was lighthearted. He felt Hoffman’s depiction was “too nerdy,” a minor point considering the gravity of the events depicted in The Wolf of Wall Street and Madden’s actual involvement.
