The Commodity Futures Trading Commission (CFTC) on Friday ordered Gabriel Perez, a former White House teleprompter operator, to pay $172,539.02 for using nonpublic information to trade presidential mention market contracts between December 2025 and February 2026.
Perez must forfeit $107,539.02 in profits and pay a $65,000 civil penalty, with the CFTC citing his “exemplary cooperation” as a reason for the reduced penalty. He has also been banned from trading for three years and agreed to cease and desist from further violations of the Commodity Exchange Act.
How the scheme worked
According to the CFTC’s order, Perez traded on event contracts that predicted whether President Donald Trump would use specific words or phrases in his speeches. As a teleprompter operator, Perez had access to draft speeches before delivery, which he then used to place bets on Kalshi, a prediction market platform. The CFTC found that Perez “misappropriated” this information “in breach of his duty of trust and confidence.”
The CFTC confirmed that Perez’s trades generated over $107,500 in profits, which he must now surrender. His civil penalty was reduced due to his cooperation with the investigation, though the agency did not disclose further details about his assistance.
White House response and personnel action
White House Press Secretary Karoline Leavitt stated in July that Trump was aware of the matter and called the situation “deeply unfortunate and frankly a disgrace.” Leavitt also noted that Perez was complying with the CFTC’s investigation and that the White House had strict ethical guidelines regarding such conduct.
Perez was placed on unpaid administrative leave in mid-July and later suspended from his role, according to reporting from ABC News. He is no longer employed by the federal government.
Role of Kalshi and regulatory oversight
Kalshi, the prediction market platform where Perez placed his trades, reported unusual betting activity on its “mention markets” in March 2026. The company’s analysts identified the user as a federal employee with access to White House teleprompters and subsequently reported the activity to the CFTC.
Kalshi’s lead lawyer, Bobby DeNault, welcomed the CFTC’s decision, stating on X (formerly Twitter): “It doesn’t matter who you are: violate our rules or federal law and you will face the consequences.”
The CFTC’s order marks the closure of its action against Perez, and no further legal proceedings are expected. The case highlights ongoing scrutiny of insider trading risks in prediction markets, particularly when tied to government officials with access to sensitive information.
Background on presidential mention markets
Presidential mention markets allow traders to bet on whether a president will use specific words, phrases, or references in speeches. These markets can influence financial instruments such as foreign exchange rates, oil futures, and stock prices, as traders and analysts monitor political rhetoric for economic signals. The CFTC’s enforcement action underscores the regulatory challenges of monitoring such markets for potential abuse.