TLDR
- Gabriel Perez, who operated President Trump’s teleprompter, no longer works for the federal government
- He was previously placed on administrative leave amid a CFTC investigation into alleged insider trading on Kalshi
- Perez allegedly earned more than $100,000 betting on speech content using advance knowledge of scripts
- Federal prosecutors reportedly declined to file criminal charges, but a civil settlement with the CFTC may be discussed
- Kalshi says its surveillance team flagged the trades and referred the case to regulators
Gabriel Perez, the man who ran the teleprompter for President Donald Trump, no longer works at the White House. The Associated Press reported the change on Tuesday, citing an anonymous White House official.
The official did not say whether Perez resigned or was fired. Perez had operated Trump’s teleprompter since 2016.
The White House had already placed Perez on unpaid leave. That decision came after reports surfaced that he was under investigation by the Commodity Futures Trading Commission.
What Perez Is Accused Of
Perez allegedly used his access to Trump’s speeches to place bets on Kalshi’s “Mentions” markets. These markets let people wager on specific words a speaker might say.
ABC News reported that Perez placed bets tied to more than a dozen speeches over three months. He allegedly made over $100,000 from these trades.
The bets reportedly covered major events. These included the State of the Union address, a speech at the World Economic Forum in Davos, and remarks at a Medal of Honor ceremony.
Perez allegedly also exited some bets while speeches were happening. This reportedly occurred when Trump skipped over words Perez had wagered on or changed his planned remarks.
White House Press Secretary Karoline Leavitt commented on the allegations after they became public. She called them “deeply unfortunate and, frankly, a disgrace.”
Where the Investigation Stands
No enforcement action has been announced against Perez by either the CFTC or the Department of Justice. Federal prosecutors reportedly chose not to pursue criminal charges after reviewing the case.
The CFTC has reportedly discussed a civil settlement with Perez instead. Such a deal would likely require him to give up any profits and agree to stop similar trading.
No settlement has been confirmed at this time. The situation could still change.
Kalshi’s Head of Enforcement, Robert DeNault, addressed the matter on social media platform X. He said the company’s surveillance team caught the suspicious activity on its own.
DeNault said Kalshi flagged the trades, investigated them, and then referred the case to regulators. He added that Kalshi has been cooperating with the investigation since then.
According to DeNault, Kalshi freezes accounts once it spots suspicious trading patterns. The company does not publicly share details about ongoing investigations.
This case follows other insider trading investigations tied to prediction markets. One case involved a U.S. Army Special Forces soldier accused of trading on private information about Venezuela’s president.
Another case involved a former Google employee accused of using internal company data to place similar bets. Both cases also drew regulatory attention.
Unlike those cases, Perez’s situation involves information that was always going to become public. His alleged advantage was simply getting it before everyone else, since speeches are eventually delivered anyway.
