Introduction: Students will also begin reading the second informational text in this unit, “How Bernard Madoff Did It,” a book review that explains the nature of Madoff’s crime.

CCS

Objectives: Students will determine the central idea of the article ” How Bernard Madoff Did It” and how the author Ahamed  shapes and develops the CI in the article.

Aim: What is the central idea of the article ” How Bernard Madoff Did It” and how does  the author Ahamed  shape and develop it throughout the article?

Materials:

• Student copies of the Speaking and Listening Rubric and Checklist
• Copies of the article

Vocabulary

• stock market (n.) – a place where shares of a company are bought and sold
• hedge fund (n.) – an investment fund that invests large amounts of money using risky methods
• fluctuation (n.) – irregular rising and falling in number or amount
• voyeuristic (adj.) – having the quality of being an obsessive observer of sordid or sensational subjects
• morbidly (adv.) – unhealthily; unwholesomely gloomy or extreme
• travails (n.) – pains and suffering because of hardships
• broker-dealer firm (n.) – an organization that trades stocks for customers; when acting for the customer the organization is the “broker,” and when acting for themselves they are the “dealer”
• downside risks (n.) – the risks between the return you hope to get and the return you actually receive
• hedge the portfolio (v.) – to reduce losses of the combined investments
• cottage industry (n.) – any small-scale, loosely organized industry
• feeder funds (n.) – smaller amounts of money that invest into a larger “master fund”
• channeled assets (n.) – moved assets (money or stocks)
• Potemkin-like (adj.) – apparently impressive but actually false; named after the Russian soldier and statesman who was Empress Catherine II’s lover and is supposed to have built fake villages along the route of her tour of the Crimea
• Sophoclean family tragedy (n.) – reference to Sophocles the playwright; a terrible thing happening to a family on a dramatic scope
• chasm (n.) – a deep divide or gap
• Securities and Exchange Commission (n.) – a U.S. federal agency that regulates the stock market and other financial exchanges in the United States
• option trading (n.) – buying and selling a very risky financial asset
• derivatives market (n.) – a market for a type of asset
• incarceration (n.) – the state of being in prison
• recession (n.) – a period of economic contraction or decline
• plausible (adj.) – appearing to be true and believable
• viability (n.) – capacity to operate and sustain
• engrossing (adj.) – fully occupying the mind
• embodiment (n.) – a concrete or physical representation

Mini Lesson

A book review, a type of informational text, is meant to give information about a book and its topic, as well as an opinion about the quality and scope of the book.

Read the 1st paragraph of the article and determine the central idea in the first paragraph of “How Bernard Madoff Did It.” How does this idea emerge and what details shape its development?  Identify textual evidence that addresses the development of central ideas in the text.

Use questions to deepen the understanding-

1. According to Ahamed what makes the Madoff scandal different from others?
2. What does Ahamed mean by “others found a certain voyeuristic pleasure in the financial travails of the rich and famous”?
3. Why was the public “morbidly fascinated” by the Madoff scandal?

Independent Practice

Through a jigsaw activity, students will present central ideas and supporting evidence that develop and/or refine the ideas from selected paragraphs from the text.  Students will be assessed on their presentation as well as the written response of their given portion of text.

Discuss and present the key portions of your  paragraphs, definitions of the academic vocabulary present, and will take notes on others’ presentations. You will determine the development of the central idea in this portion of text through the presentations. We will use the Speaking and Listening Rubric and Checklist to evaluate your own presentation before presenting to the rest of the class.

Your presentation needs to –

1. provide a clear and organized summary of the paragraph, as well as highlight the main ideas present in each portion of text.
2. Use introductory language such as “In this paragraph Ahamed states…” as well as organizational language to logically connect their understanding of the text.
3. underscore the importance of academic vocabulary present in their portion of text, “This word means…and functions to do…in the text.”
4.  provide an objective summary of the text and identify the central ideas present in your portion of text.

Students should be evaluated on their presentations using the Speaking and Listening Rubric and Checklist.

The Text: How Bernard Madoff Did It

Groups 1-paragraph 2-3 , Group 2- Paragraphs 4-6, Group 3 -para. 7-8, Group 4 -para. 9, Group 5 -para 10 .

Use the guided steps & questions to help deepen understand the text-

1. Read in pairs and annotate the text using the code CI to note the development of a central idea in the text.
2. Identify a central idea in “How Bernard Madoff Did It.” How does this idea emerge and develop in this portion of text?
3. Use the questions to guide your discussion-
   a. How does Ahamed refine his idea that the Madoff scandal grabbed public attention? Cite evidence Ahamed uses to refine this idea.
   b. What might Ahamed mean by “Sophoclean family tragedy” in reference to the Madoff scandal?What was the reason Madoff “fudged the numbers”?c. Why did Madoff stop “even bothering to invest the cash”?
   d. Based on your understanding of a Ponzi scheme from the video, write the last sentence of paragraph 4 (“After a while, the chasm…”) in your own words.
   e. How is Henriques able to add “significant detail to the story”?
   f. What context clues can be used to help determine the meaning of Potemkin-like?
   g. Explain how Madoff’s actions would require a writer like Henriques to be knowledgeable about “the mechanics of the fraud.”
   h. What can threaten the viability of a Ponzi scheme?
   i. What circumstances lead to the scheme being “on the verge of breaking down”?
   j. Why did Madoff constantly need to find “a new source of money”?

Assessment: Make one connection between a central idea in “How Bernard Madoff Did It” and a central idea in “ America’s Obsession with Crime.” Write a brief explanation that includes supporting evidence from each text.  Use the Short Response Checklist and Rubric to guide your written responses.

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Homework:

Watch a text-based video, http://youtu.be/52nYNE9DYYQ “$50bn Ponzi scheme – How Madoff Did It,” that explains that nature of Bernard Madoff’s crime and outlines the concept of a Ponzi scheme.  Answer some comprehension questions before finishing the viewing.  Consider these focus questions while viewing the video: Who is Bernard Madoff? What did he do? In two to three sentences describe how a Ponzi scheme works. What makes a Ponzi scheme a crime?