[ by Melanie Gretchen and Howard Haykin ]

The 'sad soapy saga' of SAC and its fearless leader, Steven A. Cohen, has generated a series of sensational headlines, as federal prosecutors wend their way up the judicial ladder picking off one SAC portfolio manager or trader at a time. 

During the lulls, when the SAC story line fades from the front page, new charges and threats are announced along with well-timed leaks about the U.S. government's latest predatory tactics. 

Late last week, 4 SAC Capital Advisors executives were subpoenaed to testify - including Steven A. Cohen - and the number bumped up to 5 executives over the weekend.

Five (5) Things to Keep Up with the Headlines ...  relating to allegations of insider trading, which have produced 4 guilty pleas from former SAC traders and an unapproved deal calling for SAC to pay $616 million to settle 2 civil insider trading actions.
 

#1   The Government Hasn’t Revealed Any Evidence So Far That Directly Implicates Cohen with any Insider Trading.

#2  Prosecutors Face Various Deadlines in Deciding Whether to Charge Cohen With Insider Trading

#3  Cohen May Choose to Invoke His Constitutional Right Not to Incriminate Himself and Not Testify Before the Grand Jury

#4  Prosecutors Have No One Who Has Publicly Said He Knows Cohen Was Aware of the Illegal Nature of the SAC Trades in Question.  Their biggest hope, Matthew Martoma Chose Not to Cooperate, Pleading Not Guilty to Insider Trading, and Awaits His Defense Trial This Summer

#5  The Government Has a Fall-Back Option That Could Close Down SAC and Ban Cohen From the Securities Industry If They Fail to Find Enough Evidence for a Criminal Case.
 

Considering prosecutors have about 6 weeks - until mid-July - to make its case against the firm related to 2 sets of 2008 trades.  Wonder what they can find in that short period that they haven't found in the past 5 years?  While we expect prosecutors to turn up the heat on SAC, the real heat (or time pressure) will be on federal prosecutors.

For further details, go to [Bloomberg, 5/24/13].