Gabriel Perez, a longtime teleprompter operator for former President Donald Trump, is under federal investigation for allegedly using advance knowledge of the president’s speeches to place insider bets. RT reported that the probe centers on Perez exploiting privileged information to wager on prediction market Kalshi, potentially earning over $100,000.
Perez, who has worked with Trump since the 2016 campaign and had access to last-minute speech edits, is suspected of betting on specific words and phrases Trump would say during public addresses. The investigation began after Kalshi detected suspicious trading patterns on its "Mentions" market, where users place bets on the language public figures might use.
The Commodity Futures Trading Commission (CFTC) was alerted by Kalshi and launched a probe after finding that Perez placed wagers on more than a dozen Trump speeches over three months. These included high-profile events like the World Economic Forum speech in January and the State of the Union address in February. Reports indicate Perez even withdrew bets mid-speech when Trump deviated from prepared remarks, avoiding losses.
Kalshi’s legal counsel, Robert DeNault, confirmed the platform’s cooperation with regulators and noted Perez’s account was frozen before he could cash out his winnings. White House rules prohibit employees from using confidential government information for personal financial gain, including betting on prediction markets like Kalshi or Polymarket.
White House Press Secretary Karoline Leavitt acknowledged the ongoing CFTC investigation and revealed Perez has been placed on unpaid administrative leave. She stated that President Trump, calling the situation a "disgrace," personally ordered Perez’s suspension. Leavitt emphasized the strict ethical standards at the White House and affirmed that Perez will no longer serve in his role.
Why this matters
This case highlights growing concerns over the integrity of prediction markets and potential insider trading risks tied to government insiders. It also underscores regulatory challenges as prediction platforms navigate complex oversight from federal and state authorities. The controversy comes amid heightened scrutiny of such markets, with ongoing legal battles and questions over jurisdiction and ethical practices.
The incident may intensify debate over how prediction markets operate and their oversight, especially given the Trump family’s connections to the industry. Donald Trump Jr.’s advisory role at Kalshi and financial involvement in Polymarket add layers to the broader discussion about conflicts of interest and regulatory adequacy.
As the investigation proceeds, the case could set important precedents for how insider information is monitored and controlled within government circles and the growing prediction market sector.
