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Madden quits CEO post
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May 2, 2001: 9:00 a.m. ET
Shoe designer, indicted for fraud, steps down; company 1Q profit meets target
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NEW YORK (CNNfn) - Steve Madden, who pleaded not guilty to stock fraud in U.S. federal court last June, is resigning as chief executive officer of the shoe company that bears his name, Steven Madden Ltd., the company said Wednesday.
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Steve Madden
(Source: Steven Madden Ltd.) | |
Madden will take the title of chief creative officer and will continue to be responsible for all creative and design functions at the company. Madden also has allowed the company to keep exclusive rights to the use of his name.
Madden was arrested June 20 last year on federal charges of participating in the manipulation of 22 initial public offerings, including the deal involving his own company. He resigned as chairman of the board of Steven Madden Ltd. the next day and appointed Charles Koppelman as acting chairman, but retained his CEO position.
Madden's attorney has "vigorously" denied the charges against him.
The company acknowledged last month that the Securities & Exchange Commission was formally investigating the trading of the company's securities.
Replacing Madden as CEO will be Jamieson Karson, a member of the company's board of directors and a partner with the New York law firm Tannenbaum Helpern Syracuse & Hirschtritt. Karson's family also owns a retail apparel business. Koppelman will continue to serve as chairman of the company.
Madden faces up to 10 years in prison for each fraud charge, five years on conspiracy charges and 20 years on a money laundering conspiracy charge, plus more than $8 million in fines, if he is convicted on all counts.
Madden 1Q meets expectations
Separately, the New York-based company also reported first-quarter earnings of $3.65 million, or 29 cents a share, up from $3.18 million, or 24 cents a share, in the year-earlier period.
Wall Street analysts expected the company to earn 29 cents a share, according to earnings tracker First Call.
Steven Madden revenue increased 21 percent to $53.4 million from $44.1 million, while same-store retail sales increased 4 percent compared with a 19 percent gain in the year-ago period.
Steven Madden (SHOO: Research, Estimates) shares closed Tuesday down 67 cents at $17.16. 
-from staff and wire reports
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