The Commodity Futures Trading Commission has penalized a longtime White House teleprompter operator for using advance knowledge of President Trump’s speeches to profit in online prediction markets, a scandal the administration calls a “disgrace.”

Gabriel Perez, who served as President Trump’s teleprompter operator since 2016, now faces staggering financial penalties and a multi-year ban after federal regulators determined he used privileged White House access for personal gain. The Commodity Futures Trading Commission (CFTC) announced that Perez “misappropriated” nonpublic information from his government job by trading contracts on Kalshi, a prediction-market platform, wagering on whether Trump would say certain words or phrases in public remarks. The CFTC ordered Perez to surrender more than $107,000 in profits, pay a $65,000 civil penalty, and accept a three-year ban from trading event contracts.

The CFTC described Perez’s conduct as a “breach of his duty of trust and confidence,” and said the civil penalty was a “substantial discount” due to his “exemplary cooperation” with the investigation. Perez’s rapid downfall began when Kalshi’s surveillance system detected suspicious trades tied to the president’s upcoming speeches, prompting the platform to freeze his account and flag the activity to federal regulators. Market makers had reportedly raised alarms about the trades through Kalshi’s whistleblower channels, which led to an internal review and the referral to the CFTC. Kalshi’s head of enforcement, Robert DeNault, wrote on X, “A Kalshi surveillance investigation caught a White House staffer engaging in prohibited trading activity... It doesn’t matter who you are: violate our rules or federal law and you will face the consequences.”

Perez’s bets reportedly spanned speeches delivered between December 2025 and February 2026, including major public addresses. According to FOX Business reporting, he was placed on paid administrative leave in July as the investigation unfolded, before being formally penalized by the CFTC.

The White House, which confirmed the investigation and Perez’s removal from duty, has condemned the conduct in the strongest terms. Press secretary Karoline Leavitt told reporters, “Obviously, I’m aware of the report. The president is, too. I spoke with him about it. He believes it’s deeply unfortunate and, frankly, a disgrace.” Trump was reportedly briefed as soon as the allegations surfaced, and another teleprompter operator was assigned to the president’s speeches while Perez was on leave.

Perez’s privileged access exposed a glaring vulnerability

Perez’s position gave him one of the last looks at Trump’s prepared remarks before delivery, a role that, as Breitbart and Just The News both noted, afforded him a potential insider advantage. Over a dozen major speeches reportedly became targets for Perez’s bets on Kalshi, with contracts paying out if Trump uttered specific words or phrases. These “presidential mention market contracts” allowed Perez to turn confidential access into a six-figure windfall, at least until Kalshi’s compliance team intervened.

Kalshi responded swiftly, freezing more than $90,000 in suspected profits and referring the matter to the CFTC, according to Just The News. “Our surveillance team promptly flagged and referred these trades to the CFTC after an exchange investigation. We have been assisting regulators on this matter and provided evidence we collected, as we do in any referral,” DeNault said. The platform permanently banned Perez from further trading, and regulators quickly followed suit with a formal enforcement action.

This is hardly the first time federal officials have found themselves managing the fallout from staffers allegedly exploiting their positions for personal enrichment. The episode recalls recent high-profile fraud and ethics scandals, from marriage fraud rings to lawmakers under investigation, topics we’ve covered in pieces such as federal charges over marriage fraud schemes and congressional ethics controversies. But in Perez’s case, the White House took quick and decisive action, moving him off the job even as the CFTC investigation played out.

Regulators and markets move to plug the loophole

While the CFTC’s enforcement brought a swift end to Perez’s trading, the regulatory outcome stops short of criminal prosecution. Federal prosecutors reportedly declined to open a criminal case, though the CFTC’s action sends a clear message about the consequences of abusing insider information on prediction markets. As Newsmax and the Washington Examiner have reported, Perez no longer works for the federal government, although the precise circumstances of his departure have not been disclosed. The CFTC’s action is a civil enforcement, not a criminal charge, but it effectively bars Perez from participating in regulated event contract markets for the next three years.

Kalshi, for its part, has used the case to highlight the effectiveness of its surveillance and compliance systems. “Today this individual was subjected to penalties by the CFTC and by our exchange,” DeNault wrote. “It doesn’t matter who you are: violate our rules or federal law and you will face the consequences.” The company’s quick action stands in stark contrast to the slow-walking and double standards often seen in other high-profile political investigations, whether in the halls of Congress, city halls, or the White House itself. (For more on the political incentives and failures that fuel these scandals, see our analysis in how Democrats handled past fraud scandals.)

The episode has also drawn attention to the growing use of prediction markets and the regulatory gaps in how government insiders might exploit them. As event-contract platforms become more popular, market operators and federal regulators alike will face mounting pressure to prevent future abuses of confidential government information for personal profit. As seen in other politically charged controversies such as hate-crime probes involving public officials, the cost of public trust lost to insider schemes is always greater than any illegitimate gain.

White House draws a hard line as details remain unclear

Despite the civil enforcement, several questions linger about the full extent of Perez’s actions and the government’s internal controls. The CFTC’s public announcement left out details such as the exact words or phrases wagered on, the precise dates and case number of the enforcement action, and the final employment status of Perez after his leave. Nevertheless, the message from the Trump administration was unambiguous. “Deeply unfortunate and, frankly, a disgrace,” said press secretary Karoline Leavitt, echoing the president’s view.

Public confidence in federal institutions depends on a culture of accountability and swift response to wrongdoing. When staffers exploit their access for personal gain, they not only break the law, they undermine the trust on which constitutional government rests. The Perez case stands as a reminder that even the most routine White House jobs carry heavy responsibilities, and that Americans expect honest, clean, and accountable government at every level.

Americans work hard, play by the rules, and expect the same from those in government, especially when so many are eager to excuse or cover for elite misconduct.