Federal regulators are investigating President Donald Trump’s longtime teleprompter operator for allegedly using advance knowledge of presidential speeches to profit from prediction market bets, marking the first known insider trading case involving a White House employee and online betting platforms.

The Investigation Details

Gabriel Perez, who has operated Trump’s teleprompter for a decade, allegedly made over $90,000 in profits through trades on Kalshi, a regulated prediction market platform. The trades focused on what specific words and phrases Trump would use during public speeches and events. Kalshi’s internal surveillance team detected the suspicious activity and referred the matter to the Commodity Futures Trading Commission, the federal agency overseeing prediction markets. The profits remain frozen pending the investigation’s outcome.

Perez holds the title of deputy assistant to the president and technical advisor, earning $175,000 annually, making him among the highest-paid White House staff members. His position gives him unique access to Trump’s remarks, often being the final person to review speeches before delivery. Trump has previously stated his strong preference for Perez’s work, praising him publicly during a 2024 campaign event in Reno.

White House Response and Ethics Concerns

White House press secretary Karoline Leavitt announced Thursday that Trump was aware of the allegations and called the situation deeply unfortunate and a disgrace. Perez has been placed on unpaid administrative leave while the investigation proceeds. Another operator will handle the teleprompter for Trump’s scheduled Thursday night address on election integrity. White House officials confirmed Perez is cooperating fully with federal investigators.

The White House had issued an ethics memo on March 24 warning all staff against using nonpublic information for financial gain through prediction markets. The memo explicitly stated that misusing such information would not be tolerated and constitutes a serious offense. CFTC chair Mike Selig, a Trump appointee who has championed prediction markets, previously pledged to crack down on insider trading regardless of its source, including from within the White House.

Broader Market Implications

This case emerges as prediction markets have surged in popularity throughout the year, creating new regulatory challenges. The investigation highlights concerns about government employees potentially exploiting privileged information for personal profit. Robert DeNault, Kalshi’s head of enforcement, confirmed the company is cooperating with regulators and assisting the investigation. The CFTC declined to confirm or deny the investigation when contacted, following standard agency protocol for ongoing matters.