Teleprompter Operator Under Investigation for Alleged Insider Trading

A teleprompter operator for President Trump is currently under investigation by federal regulators. He is alleged to have made nearly $100,000 through the prediction market site, Kalshi. This information comes from two individuals with direct knowledge of the investigation, who were not permitted to speak publicly.

Insider Trading Allegations

The operator, Gabriel Perez, has been accused of exploiting his access to the president’s speaking scripts. He is suspected of profiting from a specific type of betting on Kalshi known as ‘mention markets.’ These markets let participants gamble on specific words and phrases the president might use during public addresses.

Prediction markets, like Kalshi, let users place bets on various topics, including elections, policies, and more trivial matters like the color of a tie. As popularity climbs, so do instances of insider trading. This case is particularly notable because it involves someone from within the White House.

Negotiations and Market Surveillance

Perez, who has been with the president since 2016, is in talks with the Commodity Futures Trading Commission about his alleged betting activities. Traders have already risked over $800,000 on Trump’s potential phrasing in an upcoming speech, anticipating words such as ‘Hormuz,’ ‘rigged election,’ and ‘fake news.’

Kalshi’s surveillance identified atypical betting behavior related to the president. Upon investigation, they found a federal employee’s involvement. Kalshi’s head of enforcement, Robert DeNault, confirmed that the company had cooperated with regulators, providing collected evidence during the investigation.

Kalshi has since frozen approximately $90,000 of Perez’s profits and banned him from participating on the platform. Perez has not offered any comments regarding the situation.

Market and Legal Implications

The president’s untamed speaking style generates unpredictable trading on ‘mention markets,’ augmenting the volatility as traders attempt to forecast potential discussion topics. Some traders have gone so far as to set up TV antennas to gain milliseconds of advantage during live events.

According to Kalshi’s rules, using privileged information to influence or win bets is forbidden. Offenders risk facing wire fraud, commodities fraud, and money laundering charges. However, the Department of Justice’s involvement in Perez’s case remains uncertain.

In March, the White House issued a memo warning staff against using government information for making bets on platforms like Kalshi and Polymarket. The memo clarified that such actions constitute a criminal offense within the White House premises.

Other Related Cases

Other incidents highlight the rising trend and legal ramifications of insider betting. In April, a U.S. Army special forces member faced charges for earning $400,000 on Polymarket ahead of a significant event. Additionally, a Google engineer was charged with leveraging confidential information to gain $1.2 million on Polymarket related to Google search trends.

Further investigations have targeted individuals like former Congressman George Santos. He allegedly manipulated a Kalshi market by falsely indicating his attendance at Trump’s 2026 State of the Union, profiting when he did not attend.