Key facts
- Former White House teleprompter operator Gabriel Perez agreed to pay $172,000 to settle CFTC charges.
- Perez allegedly misappropriated confidential government information to trade "presidential mention market" contracts.
- He generated over $107,500 in profits by betting on outcomes of presidential speeches he knew in advance.
- The settlement requires Perez to disgorge $107,539.02 in gains, pay a $65,000 civil penalty, and accept a three-year trading ban.
- The CFTC noted a discounted penalty due to Perez's cooperation with the investigation.
A former White House teleprompter operator, Gabriel Perez, has agreed to pay $172,000 to settle charges brought by the Commodity Futures Trading Commission (CFTC) for allegedly engaging in insider trading on prediction markets.
Perez is accused of misappropriating confidential government information, specifically advance knowledge of presidential speeches, to trade "presidential mention market" contracts. These contracts pay out based on specific words or phrases used by the president. Because his role provided him with early access to speeches, Perez was allegedly able to wager on outcomes he already knew.
Between December 2025 and February 2026, Perez reportedly generated over $107,500 in profits through this alleged scheme. The settlement requires him to disgorge these gains, pay a $65,000 civil penalty, and accept a three-year ban from trading. The CFTC noted that the penalty was significantly reduced due to Perez's cooperation with the investigation, and credited the exchange operator Kalshi for its assistance.
This case serves as a prominent example of the insider-trading risks associated with prediction markets, which have seen a surge in popularity. These platforms allow users to bet on real-world events, creating opportunities for individuals with nonpublic information to profit. Similar incidents have previously involved a U.S. soldier charged over Polymarket trading and a MrBeast video editor investigated for Kalshi insider trading.