Washington — Gabriel Perez, the veteran teleprompter operator who has traveled with President Donald Trump for more than ten years, settled a civil case with the Commodity Futures Trading Commission (CFTC) on Friday. Under the agreement, Perez will pay a $65,000 fine and forfeit $107,000 in profits he earned from trading on Kalshi, a prediction‑market platform that allows users to bet on the outcome of events such as the president’s speeches.
Details of the settlement
The CFTC said Perez’s trades were based on “unlawful” insider information because he had advance knowledge of the president’s remarks before they were publicly released. The agency noted that Perez received a reduced fine because of his “exemplary cooperation” with investigators, a factor that can lower penalties under existing CFTC rules.
Background on the investigation
The probe began after a July report indicated that the commission was looking into possible insider‑trading activity involving a White House employee. At that time, the White House stated that President Trump believed Perez’s conduct was “a disgrace” and placed him on unpaid leave while the investigation proceeded.
Why this matters
This case marks the first known instance of a White House staffer being accused of using privileged information to profit from prediction markets. The settlement underscores the importance of maintaining the integrity of federal officials’ access to non‑public information, especially as prediction‑market platforms grow in popularity.
What is Kalshi?
Kalshi is a regulated exchange that offers contracts tied to the outcome of real‑world events, ranging from economic indicators to political speeches. While the platform is legal and overseen by the CFTC, participants are prohibited from trading on material non‑public information, a rule that applies to all users, including government employees.
Response from the administration
The White House has not issued a new comment since the settlement was announced. Earlier statements emphasized President Trump’s disappointment in the aide’s actions and reaffirmed the administration’s commitment to ethical conduct among its staff.
Looking ahead
Regulators are likely to continue monitoring insider‑trading risks associated with emerging financial products like prediction markets. The CFTC’s action in this case sends a clear message that even high‑level government employees are not above the law when it comes to the fair use of market information.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
