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Gabriel Perez, who has served as President Donald Trump's teleprompter operator since the 2016 election, is under scrutiny for allegedly profiting over $100,000 by betting on the content of Trump's speeches. This information comes from sources involved in a federal investigation led by the Commodity Futures Trading Commission (CFTC). Reports indicate that Perez utilized insider knowledge of Trump's prepared remarks to place bets on a prediction market platform called Kalshi.

Details of the Investigation

The CFTC is investigating claims that Perez placed wagers on Kalshi's "Mentions" market, which allows users to bet on whether certain words or topics will be mentioned during public addresses. Sources reveal that Perez is currently in discussions for a potential settlement with the CFTC after allegedly making significant profits from these trades. Kalshi's internal surveillance team flagged unusual betting patterns, prompting the company to notify regulators.

White House Response

In light of these allegations, White House Press Secretary Karoline Leavitt announced that Perez has been placed on unpaid administrative leave. President Trump was made aware of the situation and chose to suspend Perez. Leavitt emphasized the White House's commitment to strict ethical standards for all staff members.

Scope of the Allegations

Investigators have reportedly traced bets linked to over a dozen of Trump's speeches within a three-month timeframe, including significant addresses such as the State of the Union and remarks at the World Economic Forum. Notably, during a speech at the Detroit Economic Club, Trump acknowledged his tendency to deviate from prepared remarks, which may have influenced Perez's betting strategy.

Internal Memo Issued

The investigation has led to the distribution of an internal memo reminding White House staff about the prohibition against using nonpublic government information for trading on prediction markets. Perez, who has been closely associated with Trump, had access to nearly all of the president's speeches and was responsible for last-minute edits.

Settlement Negotiations

Sources indicate that Perez has admitted to some of the trades during discussions with regulators. Although federal prosecutors in Manhattan were informed of the situation, they opted not to pursue criminal charges. The CFTC is reportedly considering a civil settlement that would require Perez to forfeit his alleged earnings and refrain from similar activities in the future. Kalshi has recently tightened its compliance measures, mandating users to disclose their employment to prevent insider trading.

As prediction markets face increasing regulatory scrutiny, the Justice Department has initiated its first insider trading cases related to these platforms. While President Trump has previously expressed concerns about prediction markets, he has also suggested that the U.S. should keep pace with companies like Kalshi and Polymarket.