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Madden's financial affairs were closely entangled with Long Island 'pump and dump' brokerage Stratton Oakmont, cofounded by Madden's childhood friend Danny Porush.
The firm was responsible for the initial public offering of 35 companies, including Steve Madden Ltd., Hemesphere Biopharma, Dualstar Technologies, D.V.I. Financial, Paramount Financial, M. H Meyerson & Co., Czech Industries, M.V.S.I. Technology, Questron Technologies, and Etel Communications.
In 1996, Congress effectively reversed this opinion via Section 230 of the Communications Decency Act.