Gabriel Perez, a former White House teleprompter operator, has been ordered to return over $100,000 in profits and pay a $65,000 fine following an insider trading settlement announced on Friday. The Commodity Futures Trading Commission (CFTC) also imposed a three-year trading ban on Perez, who used inside information to place bets on the prediction market Kalshi between December 2025 and February 2026, according to fortune.com.
The CFTC found that Perez exploited his access to presidential speeches before they were delivered to make $107,500 by betting on specific words and phrases that would appear in President Donald Trump’s speeches. Perez was placed on unpaid leave after reports surfaced about his trading activities. The commission stated that Perez breached his duty of trust and confidence by misappropriating confidential information. The $65,000 penalty was reduced due to his cooperation, and he must repay all profits gained from the trades, fortune.com reported.
This case highlights regulatory scrutiny over insider trading in emerging prediction markets like Kalshi, which allow bets on political events and speech content. The settlement follows increased attention to the use of non-public information in trading digital contracts tied to real-world events. The White House declined to comment immediately, but a spokesperson previously called the incident "unfortunate" and "a disgrace," per fortune.com. The ruling underscores enforcement efforts to maintain market integrity amid novel trading platforms.
Perez’s trading ban and financial penalties mark a significant enforcement action by the CFTC against misuse of privileged information. The settlement was announced on August 28, 2026, with Perez ordered to repay $107,500 in profits and pay the civil penalty. The case sets a precedent for oversight of prediction markets linked to political speech and insider information, according to fortune.com.