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Former White House aide fined for prediction market trades

Gabriel Perez reached a settlement with the CFTC to pay a $65,000 fine, forfeit $107,500 in profits, and accept a three-year trading ban for using presidential speech drafts to bet on Kalshi.

Published August 28, 2026 at 11:50 PM EDT

The short answer

Gabriel Perez reached a settlement with the CFTC to pay a $65,000 fine, forfeit $107,500 in profits, and accept a three-year trading ban for using presidential speech drafts to bet on Kalshi.

Former White House aide fined for prediction market trades

The Facts

Who
Gabriel Perez, former White House teleprompter operator; the Commodity Futures Trading Commission (CFTC); and Kalshi.
What
A settlement between a former White House staffer and the CFTC regarding insider betting on prediction markets.
When
Friday (announcement) and July 16 (commentary)
Where
Washington, D.C.
Why
The staffer allegedly used his access to upcoming presidential speeches to place successful bets on words and phrases, leading to a fine, forfeiture of profits, and a trading ban.

Timeline of what happened

Key dates and decisions, in the order they occurred.

  1. January 1, 2025

    Perez begins role as White House technical adviser

  2. December 1, 2025

    Beginning of period of unauthorized trading activity cited by CFTC

  3. February 1, 2026

    End of period of unauthorized trading activity cited by CFTC

  4. March 1, 2026

    White House Management Office warns aides against prediction market bets

  5. July 16, 2026

    Press Secretary Karoline Leavitt comments on the investigation

A former White House teleprompter operator, Gabriel Perez, has reached a settlement with the Commodity Futures Trading Commission (CFTC) following allegations that he used nonpublic information to place bets on a prediction market. The CFTC announced the settlement on Friday, requiring Perez to forfeit $107,500 in profits and pay a $65,000 civil penalty. Additionally, Perez is prohibited from trading on any CFTC-regulated markets for three years.

The action follows an investigation into Perez's activities on Kalshi, a platform where users trade on the outcomes of future events. According to the CFTC, Perez utilized his access to presidential speeches before they were delivered to bet on specific words and phrases President Trump would use. The commission stated that this conduct constituted a misappropriation of information in breach of his duty of trust and confidence.

The trades in question occurred between December 2025 and February 2026. Kalshi reported that its surveillance systems detected trading patterns that did not align with typical market activity, leading the company to freeze Perez's account and lock more than $90,000 in profits. The company subsequently referred the case to the CFTC and worked with the agency for several months.

Perez served in the Trump administration during both the president's first and second terms, holding roles as a teleprompter operator and technical adviser. While the White House did not provide an official comment on the settlement, an official confirmed in July that Perez was no longer in his position. He had previously been placed on unpaid leave after the betting activity was discovered. White House press secretary Karoline Leavitt described the situation on July 16 as "unfortunate" and "a disgrace."

This enforcement action follows a March letter from the White House Management Office that warned staff against using nonpublic information for bets on prediction markets. The CFTC noted that Perez's fine was reduced due to his "exemplary cooperation." The immediate next step for Perez is the payment of the ordered amounts and the commencement of his three-year exclusion from regulated trading markets.

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Questions readers ask

What happened: Former White House aide fined for prediction market trades?

A settlement between a former White House staffer and the CFTC regarding insider betting on prediction markets.

Who is involved?

Gabriel Perez, former White House teleprompter operator; the Commodity Futures Trading Commission (CFTC); and Kalshi.

When did this happen?

Friday (announcement) and July 16 (commentary)

Where did this happen?

Washington, D.C.

Why does this matter?

The staffer allegedly used his access to upcoming presidential speeches to place successful bets on words and phrases, leading to a fine, forfeiture of profits, and a trading ban.