Federal regulators are investigating a longtime White House teleprompter operator over allegations that he improperly profited from prediction markets. These markets are based on President Donald Trump’s prepared public remarks.

The investigation centers on Gabriel Perez, a deputy assistant to the president who has worked with Trump since 2016. According to people familiar with the matter, Perez is in settlement discussions with the Commodity Futures Trading Commission (CFTC). He allegedly earned nearly $100,000 through trades on the prediction market platform Kalshi.

Alleged Profits From “Mention Markets”

The investigation focuses on Kalshi’s so-called mention markets. In these markets, participants wager on whether a public figure will mention specific words or phrases during a speech or event.

As the president’s teleprompter operator, Perez allegedly had advance access to prepared remarks before they were delivered publicly.

Federal investigators are examining whether that access provided an unfair trading advantage.

Kalshi’s internal surveillance systems reportedly detected unusual betting activity tied to presidential mention markets. The company referred the matter to regulators after identifying Perez as the account holder.

White House Places Employee on Leave

White House Press Secretary Karoline Leavitt confirmed Thursday that Perez has been placed on unpaid administrative leave. This will continue while the matter is reviewed.

According to Kalshi, approximately $90,000 in alleged profits has been frozen. Perez has also been permanently barred from trading on the platform.

Perez has not publicly commented on the investigation.

How Prediction Markets Work

Prediction markets allow participants to buy contracts based on the likelihood of future events.

Rather than wagering through traditional sportsbooks, users trade contracts that rise or fall in value. This depends on the perceived probability of an outcome occurring.

On presidential “mention markets,” traders speculate whether certain words or phrases will be spoken during speeches, debates or press conferences.

Because President Trump is known for frequently departing from prepared remarks, these markets are considered especially volatile.

Growing Scrutiny of Prediction Markets

The investigation is the latest in a series of high-profile cases involving prediction market platforms.

Federal authorities have recently pursued cases involving:

• A U.S. Army Special Forces soldier accused of using classified information to place prediction market bets.
• A Google software engineer charged with allegedly using confidential company information to profit from prediction markets.
• Former Congressman George Santos, who has also reportedly been under investigation over Kalshi-related trading activity.

The Perez investigation is believed to be the first involving an individual working inside the White House.

White House Had Already Warned Staff

Earlier this year, White House employees reportedly received an internal ethics memo. It warned against trading on prediction market platforms using nonpublic government information.

The guidance stated that buying or selling contracts based on confidential government information could violate federal law. It may also result in criminal penalties.

Potential offenses could include fraud involving commodities markets, wire fraud and other financial crimes.

Kalshi Says Its Monitoring System Flagged the Trades

Kalshi credited its internal compliance systems for detecting the suspicious activity.

According to the company, its surveillance team identified trading patterns that appeared inconsistent with ordinary market behavior. The company voluntarily referred the case to federal regulators while preserving evidence gathered during its internal review.

The company says it continues to cooperate with the ongoing investigation.

Investigation Continues

It remains unclear whether the Department of Justice will pursue criminal charges. Alternatively, the matter could ultimately be resolved through a civil settlement with the Commodity Futures Trading Commission.

The case is expected to become another significant test of how regulators oversee prediction markets. This is happening as the industry continues to grow and increasingly intersects with government, politics and financial regulation.