Federal regulators are investigating a longtime teleprompter operator for President Trump, alleging he made nearly $100,000 by betting on the president’s words on a prediction market site. The operator, Gabriel Perez, is suspected of profiting from his access to the president’s prepared remarks, using a type of betting known as “mention markets” on the site Kalshi.
Perez, who has worked for the president since 2016, is negotiating a settlement with the Commodity Futures Trading Commission over his alleged lucrative betting activity. Kalshi’s surveillance systems detected unusual betting patterns on “mention” markets involving the president, which led to the discovery that Perez was a federal employee.
Insider Trading Probe
Perez’s alleged actions have raised concerns about the use of non-public government information for personal gain. The White House has warned staff against using such information to place bets on prediction market sites, stating that it is a criminal offense. The investigation into Perez marks the first time someone inside the White House has been probed for allegedly abusing their access for prediction market profits.
Kalshi has frozen about $90,000 of Perez’s profits and banned him from betting on the site. The company has also cooperated with regulators, providing evidence and assisting in the investigation. The case highlights the risks of insider trading on prediction market sites, where users can bet on a wide range of events, including elections and public statements.
The president’s unpredictable speaking style has made for highly volatile trading on Kalshi’s “mention markets,” where traders try to forecast what words or phrases he will use during public events. Some traders have even installed TV antennas to get a tiny fraction-of-a-second advantage during live events.
Broader Implications
The investigation into Perez has significant implications for the use of prediction market sites and the potential for insider trading. The case also raises questions about the security of non-public government information and the need for stricter controls to prevent its misuse. As the use of prediction market sites continues to grow, regulators will need to stay vigilant to prevent similar cases of insider trading.
The probe into Perez’s activities is a reminder that the use of non-public information for personal gain is a serious offense, and that those who engage in such behavior will face consequences. The investigation also highlights the importance of transparency and accountability in government, and the need for officials to uphold the highest standards of integrity.
