Investigation into White House Teleprompter Operator over Prediction Market Profits

Federal regulators are engaged in settlement discussions with Gabriel Perez, President Trump’s long-serving teleprompter operator. Perez is accused of earning nearly $100,000 through the prediction market site Kalshi. Two anonymous sources familiar with the investigation have shared these details.

Perez allegedly profited through a Kalshi feature known as “mention markets.” This involves wagering on specific words or expressions the president might use during public speeches. Prediction markets are platforms where people can bet on a wide range of events, including political speeches. These markets have seen rapid growth recently, leading to notable cases of insider trading.

This situation marks the first instance of a White House insider being investigated for potentially exploiting access to gain from prediction markets. Perez, associated with President Trump since 2016, is in negotiations with the Commodity Futures Trading Commission over his alleged activities.

In anticipation of Trump’s upcoming address, traders on Kalshi have already wagered over $800,000 on whether words like “Hormuz,” “rigged election,” or “fake news” will be mentioned. Kalshi’s monitoring systems noticed Perez’s unusual betting patterns, which diverged from typical behavior. Upon review, officials identified him as a federal employee.

“Our surveillance team promptly flagged and referred these trades to the CFTC after an exchange investigation,” stated Robert DeNault, enforcement head at Kalshi. “We have been assisting regulators by providing collected evidence.”

Kalshi has frozen approximately $90,000 of Perez’s profits and banned him from future betting. Perez has not responded to requests for comment. ABC News initially reported on the investigation concerning Perez.

The president’s unpredictable speaking style often results in volatile trading within “mention markets,” where traders attempt to predict the topics he will discuss. Some traders treat these markets as full-time endeavors, even installing TV antennas to gain a microsecond advantage during live broadcasts.

Using non-public information for gain or manipulating markets on Kalshi violates the platform’s rules. Such actions may also lead to criminal charges, including wire fraud and commodities fraud. It remains unclear if the Department of Justice is investigating Perez’s case.

In March, White House staff were reminded through a memo of the legal offenses associated with using nonpublic government information to place bets on Kalshi and its competitor, Polymarket. This memo emphasized that such misuse is a grave offense and will not be tolerated.

In recent months, other individuals have faced legal action for similar activities. For example, in April, a U.S. Army special forces soldier was charged with earning $400,000 on Polymarket following the capture of Venezuelan leader Nicolás Maduro. Moreover, a Google software engineer faced charges for making $1.2 million through insider knowledge of Google search trends.

Further criminal investigations include former Republican congressman George Santos. It is alleged he manipulated a Kalshi market by falsely indicating attendance at Trump’s 2026 State of the Union address, later profiting from this misinformation.