A federal employee with access to President Trump’s prepared remarks has been placed on unpaid administrative leave after earning more than $100,000 through prediction market wagers based on information from his White House position.
Gabriel Perez, who has served as a teleprompter operator during both the president’s first and second terms, placed bets on so-called mention markets through the trading platform Kalshi. These markets allow participants to wager on specific words or phrases that speakers might use during public events.
The case came to light when Kalshi’s surveillance systems detected unusual trading patterns in Perez’s account activity. The company subsequently froze his account, locking approximately $90,000 in profits, and launched an internal investigation.
“Our surveillance team promptly flagged and referred these trades to the CFTC after an exchange investigation,” Robert DeNault, head of enforcement at Kalshi, stated. “We have been assisting regulators on this matter and provided evidence we collected, as we do in any referral.”
Following its investigation, Kalshi referred the matter to the Commodity Futures Trading Commission, the federal agency responsible for regulating prediction markets. The company has been cooperating with the CFTC for several months on this case.
A CFTC spokesperson declined to confirm or deny the existence of an investigation, as is standard agency practice. However, sources familiar with the matter indicate that Perez has been fully cooperative with regulators and is currently in discussions regarding a potential settlement.
The incident has raised concerns about the use of nonpublic government information for personal financial gain. In March, the White House Management Office distributed a letter to White House aides specifically instructing them not to place bets on prediction markets using nonpublic information.
White House Press Secretary Karoline Leavitt addressed the matter during a Thursday briefing, confirming that Perez had been placed on unpaid leave at President Trump’s direction.
“The president believes it’s deeply unfortunate and frankly a disgrace,” Leavitt said. “The individual that was cited in that report is complying with the CFTC but has been put on administrative leave.”
According to public records maintained by LegiStorm, a database tracking government staffers, Perez has held positions as both a technical adviser and teleprompter operator during his tenure with the Trump administration.
The case highlights growing scrutiny of prediction markets and their vulnerability to exploitation by individuals with access to privileged information. As these platforms have gained popularity, regulators have increased their focus on ensuring market integrity and preventing insider trading.
The investigation continues, and the outcome of settlement discussions between Perez and the CFTC remains pending. The White House has not provided additional comment on the matter or indicated whether further policy changes regarding employee conduct and prediction markets will be implemented.
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