The Securities and Exchange Commission charged a Birmingham, Alabama-based certified public accountant with insider trading on confidential information about the impending merger of two potato chip manufacturers.

The SEC alleges that A. Catlin Cade, IV misappropriated material nonpublic information concerning the merger of potato manufacturer Golden Enterprises Inc. with privately-held Utz Quality Foods, LLC. The SEC alleges that Cade received the information through his work as an accountant providing tax advice for a private company owned by a member of Golden Enterprise's board of directors. Cade immediately purchased 2,000 shares of Golden Enterprises common stock for $22,467, and then sold his entire position immediately after the merger was announced the following day, realizing a profit of $8,745.

The SEC's complaint, filed in the U.S. District Court for the Northern District of Alabama, charges Cade with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Cade has agreed to settle the SEC's charges by consenting to a permanent injunction, disgorgement of ill-gotten gains plus interest, and a penalty equal to the amount of his profits.

The SEC acknowledges the assistance of the Financial Industry Regulatory Authority, the United States Attorney's Office for the Northern District of Alabama, and the Alabama Securities Commission in this matter.