The Commodity Futures Trading Commission (CFTC) announced Friday that Gabriel Perez, a former teleprompter operator for President Trump, must return $107,539.02 in profits and pay a $65,000 civil penalty for violating insider‑trading rules. The penalty stems from Perez’s use of “material, nonpublic information” obtained through his White House position to place bets on a prediction market that tracks whether the President will use specific words or phrases in upcoming speeches.
Details of the violation
According to the CFTC, Perez made the trades through the online platform Kalshi, which offers contracts that pay out based on the occurrence of specific presidential mentions. Kalshi’s lead lawyer, Bobby DeNault, said a surveillance investigation uncovered the prohibited activity and that the exchange cooperated fully with regulators.
Perez was described as a technical assistant who had served as a teleprompter operator for President Trump since 2016. The CFTC highlighted his “exemplary cooperation” during the investigation, but still imposed a three‑year ban on his participation in any prediction‑market trading.
White House response
White House press secretary Karoline Leavitt previously called the trades a breach of ethics, labeling the conduct “deeply unfortunate and frankly a disgrace.” Perez was placed on leave in July, and Leavitt indicated that he would no longer remain in his position.
The White House did not immediately respond to a request for comment on the CFTC’s enforcement action.
Regulatory context
The CFTC treats this case as insider trading because the contracts are based on information that is not publicly available until the President speaks. The agency’s enforcement action underscores its commitment to policing nonpublic information in emerging financial markets, including prediction markets that have grown in popularity.
Kalshi, the exchange involved, said it enforces strict compliance rules and will continue to work with regulators to prevent future violations.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
