A former White House teleprompter operator faces a financial penalty of more than $172,000 after using advance knowledge of US President Donald Trump’s speeches to place bets on a prediction markets platform.
Gabriel Perez is ordered to surrender $107,539.02 in trading profits and pay an additional civil penalty of $65,000, according to a settlement announced by the Commodity Futures Trading Commission, CFTC.
The regulator says Perez uses information about Trump’s upcoming remarks to trade contracts on Kalshi, a prediction markets platform where users can place positions on the outcome of real-world events. The trades involve presidential addresses delivered between December 2025 and February 2026.
According to the CFTC, Perez misappropriates information obtained through his position at the White House and uses it to place bets in breach of his duty of trust and confidence. As part of the settlement, Perez also faces a three-year ban from trading.
The CFTC says the civil penalty is reduced because of Perez’s “exemplary co-operation” with its investigation. The White House has not issued a comment on the settlement.
However, former White House press secretary Karoline Leavitt says in July that Perez is on unpaid leave and will not return to his position.
The case centres on Kalshi’s so-called “mention markets”, where users predict whether a particular person will mention specific words, countries, slogans or other terms during a speech.
Also Read: White House considers citizenship checks for bank customers
Kalshi previously tells the BBC that its analysts identify unusual betting activity involving these markets in March. The company says its investigation of the account data identifies the trader as a federal employee who operates White House teleprompters.
Kalshi then reports the activity to the CFTC. The company’s lead lawyer, Bobby DeNault, welcomes the regulator’s action in a post on X.
“It doesn’t matter who you are: violate our rules or federal law and you will face the consequences,” DeNault says.
Kalshi says the case highlights the potential significance of information contained in political speeches, particularly when public remarks can influence financial markets.
“The words of political leaders like Presidents and Fed chairs cause billions of dollars of movement in FX markets, oil futures, [and] the stock market,” the company says.
The case also comes as the Trump administration faces growing scrutiny over the use of prediction markets by government employees.
In July, the White House Management Office sends a letter to aides instructing them not to place bets on prediction markets, administration officials tell the BBC’s US media partner CBS News.
The restriction reflects concerns over potential conflicts of interest and the use of non-public information by government employees.
Prediction markets have expanded in popularity in the United States, allowing users to trade contracts tied to political, economic, social and other real-world outcomes.
The Perez case demonstrates the regulatory risks that can arise when individuals with access to confidential or advance information participate in such markets.
Under the CFTC settlement, Perez is required to surrender the alleged trading profits, pay the civil penalty and remain prohibited from trading for three years.
The settlement brings the regulatory action against him to a conclusion, while the White House has yet to publicly comment on the case.
BBC
