Trump White House staffer fined $172,000 and banned from prediction markets over insider trading on presidential speeches

President Trump’s longtime teleprompter operator was ordered to pay $172,000 and barred from prediction market trading after federal regulators found he used information from his White House job to bet on Trump’s speeches, a case the administration has called “a disgrace.”

The Commodity Futures Trading Commission (CFTC) announced late Friday that Gabriel Perez, who served as President Trump’s teleprompter operator since 2016, must pay back more than $100,000 in profits and a $65,000 penalty after using confidential knowledge of planned presidential remarks to place bets on the Kalshi prediction market. Perez is also prohibited from trading on such markets for three years. The CFTC described his conduct as insider trading, saying Perez used “material, nonpublic information” from his privileged access to wager on “presidential mention market contracts,” which reflect specific words or phrases the president may use during speeches.

Kalshi, the online prediction market where the trades occurred, played a central role in exposing the misconduct. In a statement posted to X, Kalshi’s lead lawyer Bobby DeNault said, “A Kalshi surveillance investigation caught a White House staffer engaging in prohibited trading activity. Today this individual was subjected to penalties by the CFTC and by our exchange.” DeNault emphasized, “It doesn’t matter who you are: violate our rules or federal law and you will face the consequences.” Kalshi referred the suspicious activity to federal regulators and was credited by the CFTC for its “exemplary cooperation.”

Perez was placed on leave in July after the trades came to light, and, according to AP News, he is no longer employed by the federal government. The White House publicly condemned the conduct as a breach of trust and ethics. Then-Press Secretary Karoline Leavitt said the episode was “deeply unfortunate and frankly a disgrace,” and confirmed, “this individual will no longer be here.”

The details of Perez’s trades remain under wraps, neither the CFTC announcement nor public statements have specified the precise contracts, dates, or which presidential speeches were involved. The CFTC’s sanction, however, is one of the most visible enforcement actions yet involving the growing world of online prediction markets and the potential for insider abuse by government employees with access to privileged information. As NBC News reported, Perez’s activity directly leveraged his behind-the-scenes role on the White House staff, highlighting the risks when public trust is undermined by those inside the system.

White House moves swiftly as questions loom about ethics and accountability

The Trump administration’s response was direct: Perez was placed on leave as soon as the allegations surfaced and, by July, Press Secretary Leavitt assured the public he would be leaving his post. The White House has faced its share of controversies and security concerns in recent years, including plots targeting high-profile events and alleged attack schemes around the presidential residence. But this case involved not outside threats, but the conduct of an insider trusted with sensitive information.

Kalshi’s active surveillance and referral of the trades to the CFTC stands in contrast to the often slow-moving world of federal oversight. The CFTC order included a three-year ban on Perez participating in prediction markets, a relatively new form of online trading that allows users to bet on political, economic, or current event outcomes. The Commission’s action underlines the importance of enforcing basic integrity, especially for those in government roles with access to nonpublic information.

Insider trading and prediction markets: a warning for public servants

This case exposes a modern twist on a classic problem: the temptation for government insiders to profit off privileged information. While the details of Perez’s trades are still not public, the CFTC’s order and the White House’s decisive response send a message that ethical standards still matter, even amid shifting technologies and new forms of speculation. As one White House official told AP News, Perez “no longer works in the federal government.”

The episode echoes the White House’s tough stance on those who breach institutional trust, whether it’s a technical assistant betting on presidential speeches or critics rehashing claims about the First Family. In both cases, the administration has moved to draw a clear line between acceptable conduct and actions that undermine public confidence.

Prediction market crackdown follows wave of controversy around White House

The CFTC’s enforcement comes during a period of heightened scrutiny and security at the White House, with recent events ranging from assassination attempts to elaborate attack plots. In this case, the risk did not come from outside threats, but from a trusted staffer who, according to both federal regulators and the administration, put personal gain ahead of the public interest.

The scandal also highlights the risks posed by prediction markets, which can tempt insiders across government and business. Kalshi’s robust surveillance and referral process, combined with the CFTC’s enforcement, demonstrate that the tools exist to identify and punish such abuse, but only when institutions are willing to act quickly and decisively.

This episode is a reminder that the greatest threat to clean government isn’t always a hacker or an outside agitator, it’s the trusted insider who thinks the rules don’t apply to him. The right response is what Americans saw here: swift action, public accountability, and a clear message that no one is above the law.