Washington – Gabriel Perez, a former White House teleprompter operator, was ordered by the Commodity Futures Trading Commission (CFTC) to turn over $107,500 in profits he earned by betting on the prediction market Kalshi. The settlement also includes a $65,000 civil penalty and a three‑year ban on any future trading activity.
Insider trading allegations
The CFTC found that Perez used his position to obtain advance knowledge of the language President Trump would use in speeches between December 2025 and February 2026. By placing bets on specific words and phrases that later appeared in the President’s remarks, Perez generated more than $100,000 in illicit gains.
According to the commission’s release, Perez “misappropriated that information — in breach of his duty of trust and confidence.” The agency characterized the $65,000 penalty as reduced because of Perez’s “exemplary cooperation” with investigators.
Administrative response
After the allegations surfaced, the White House placed Perez on unpaid leave. A White House official later confirmed that Perez was no longer employed in the teleprompter role, though the administration did not specify whether he resigned or was terminated.
White House press secretary Karoline Leavitt described the conduct as “unfortunate” and “a disgrace,” underscoring the administration’s commitment to ethical standards in the Executive Branch.
Impact on prediction markets
The case highlights growing regulatory scrutiny of prediction markets, which allow participants to wager on the outcome of future events. While such platforms can provide valuable data, the CFTC stresses that insider information must not be used to gain an unfair advantage.
Kalshi, the platform at the center of the settlement, has cooperated with regulators and continues to operate under existing compliance frameworks.
What this means for the Trump administration
The settlement demonstrates the administration’s willingness to enforce accountability, even when the misconduct involves a former staff member. By cooperating fully with the CFTC, Perez helped avoid a longer, more costly legal process.
President Trump’s team has not issued a formal comment beyond the press secretary’s remarks, but the swift action signals a broader commitment to transparency and integrity within the Executive Office.
Legal and regulatory context
Insider trading violations in the securities and commodities arenas can result in substantial fines, disgorgement of profits, and bans on future market participation. The CFTC’s authority extends to all commodity‑based contracts, including those offered by prediction‑market platforms.
Legal experts note that the three‑year trading ban serves both as a punitive measure and a deterrent to others who might consider exploiting privileged information for personal gain.
Looking ahead
While the settlement resolves the immediate case, regulators continue to monitor prediction markets for potential abuses. The CFTC has indicated that it will maintain heightened oversight to ensure that all participants adhere to fair‑play standards.
For individuals and businesses that rely on prediction markets for legitimate forecasting, the outcome reinforces the importance of strict compliance with insider‑trading laws.
Original reporting: KTBS 3 (Shreveport) — read the source article.
