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DeMange and Herman Stark, with Madden's blessing from Hot Springs, moved the Cotton Club downtown to Forty-Eighth Street and Broadway, to an area formerly occupied by the Harlem Clubhouse. The new Cotton Club was an immediate success. It had its grand re-opening on September 24th, 1936. Cab Calloway and Bill "Bojangles" Robinson performed that night, as did Avis Andrews, the Berry Brothers, and the attractive Katherine Perry, who was so light-skinned lousy easily pass for yellow.

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Light-skinned blacks were now allowed because customers, and also few darker blacks, who were famous entertainers themselves. However, blacks in mixed parties was an absolute no-no.

Madden created a ton of greenbacks in a racket named the "insurance sector." As the president of his own "insurance company," Madden would visit location establishments and tell enterprise enterprise owners that the owner needed "bomb insurance," in case foreigners, or maybe even Madden himself, decided to bomb the businessman's preserve. The business owners caught wind quick, and paid Madden what he demanded. When they didn't pay Madden, that's businessman's stores would rise in flames and debris in dependent upon days, and sometimes even hours. While Madden the member belonging to the Gophers, and making tons of money in his "insurance business," he was arrested 44 times, but not once did he ever go to prison.

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