Teleprompter Operator Targeted in Insider Trading Probe
Federal regulators are negotiating a settlement with a longtime presidential teleprompter operator suspected of using non-public information to profit from prediction market wagers. Gabriel Perez, a federal employee who served as a deputy assistant to the president, is accused of trading on “mention markets” via the platform Kalshi. Participants on the site bet on specific words or phrases the president will or will not say during public events.
Pattern of Irregular Trades Triggers Inquiry
The Commodity Futures Trading Commission (CFTC) launched an inquiry after Kalshi’s internal surveillance systems flagged irregular trading patterns linked to Perez’s accounts. Reports indicate Perez allegedly generated nearly $100,000 in profits by betting on whether the president would utter particular terms during scheduled appearances. White House Press Secretary Karoline Leavitt confirmed on Thursday that Perez has been placed on unpaid administrative leave, describing the actions as “a disgrace.”
Warning Issued Against Market Speculation
The use of non-public government information for financial speculation is strictly prohibited. In March, White House staff received a formal memo explicitly warning that buying or selling contracts on platforms like Kalshi or its competitor, Polymarket, using sensitive information constitutes a criminal offense. This marks the first time someone inside the White House has been investigated for allegedly abusing that access for prediction market profits.
Broader Crackdown on Platform Manipulation
Federal authorities have increasingly scrutinized the intersection of prediction markets and insider information. In April, federal prosecutors charged a U.S. Army special forces soldier for making $400,000 on Polymarket ahead of the capture of Venezuelan leader Nicolás Maduro. Additionally, a Google software engineer was charged in May for allegedly using confidential company information to make $1.2 million on Polymarket, for correctly guessing on Google search trends.
Platform Cooperation and Legal Consequences
Kalshi has cooperated with federal investigators, providing evidence collected through its internal monitoring tools. Robert DeNault, who heads enforcement at the platform, stated that the company promptly flagged the suspicious trades to the CFTC. Following the investigation, Kalshi reportedly froze approximately $90,000 of the profits associated with the account and banned the user from betting on the site.
The volatility of “mention markets” relies on the unpredictable and digressive speaking style of the president. Some participants treat these markets as something of a full time job, sometimes utilizing TV antennas to gain a fraction-of-a-second advantage during live events. Under federal law, such activities can lead to prosecution for wire fraud, commodities fraud, and money laundering.
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