The Securities and Exchange Commission today charged two York, Pennsylvania residents with insider trading on confidential information about the impending merger of two potato chip manufacturers.

The SEC alleges that David A. Zimliki learned from a close personal friend that potato chip manufacturer Golden Enterprises Inc. was going to merge with privately-held Utz Quality Foods, LLC. The SEC further alleges that before the merger was announced Zimliki bought shares of Golden Enterprises and tipped his friend, Russell P. Schiefer, who also bought shares. Shortly after the merger was announced, Zimliki and Schiefer each sold their Golden Enterprises shares, realizing profits of $9,319 and $5,877 respectively.

The SEC's complaint, filed in the U.S. District Court for the Middle District of Pennsylvania, charges Zimliki and Schiefer with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Zimliki and Schiefer agreed to settle the charges by consenting to permanent injunctions, disgorgement of ill-gotten gains plus interest, and penalties equal to the amount of their respective profits.

The SEC acknowledges the significant assistance of the Financial Industry Regulatory Authority in this matter.