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Madden made a ton money in a racket the "insurance sector." As the president of their own "insurance company," Madden would visit the local establishments and tell corporation owners how the owner needed "bomb insurance," in case foreigners, and maybe even Madden himself, decided to bomb the businessman's search. The business owners caught wind quick, and paid Madden what he demanded. These people didn't pay Madden, that's businessman's stores would range in price up in flames and debris in much akin to days, and even just hours. While Madden would be a member belonging to the Gophers, and making your fortune in his "insurance business," he was arrested 44 times, though not once did he ever go to prison.

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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 a spot formerly occupied by the Harlem Watering hole. 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 light-skinned lousy easily pass for pure white.

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