The Commodity Futures Trading Commission (CFTC) has levied a fine of $65,000 against Gabriel Perez, who served as a teleprompter for former President Donald Trump. This penalty stems from Perez's activities in wagering on speech markets at Kalshi, specifically concerning Trump's remarks during his addresses. Alongside the fine, Perez is required to forfeit approximately $100,000 in profits from his trading and faces a three-year ban from trading.
The CFTC revealed that Perez had participated in 14 markets related to Trump speeches and had been profitable in 39 out of 43 trading contracts, generating a total gain of $107,539.02. The commission further stated that Perez exploited his insider knowledge regarding the content of Trump's speeches for financial gain. Following these revelations, Perez's employment at the White House was terminated, and Trump publicly condemned his actions, calling him a "disgrace."
In recognition of the assistance provided during the investigation, the CFTC acknowledged Perez's cooperation, which facilitated a quick resolution. Perez admitted to having reviewed the speeches’ scripts prior to his trades, accepting full responsibility for his misconduct.
Kalshi, the trading platform involved, also contributed to the investigation. It identified Perez's activities through an internal review and promptly alerted the CFTC. Robert Denault, Kalshi's Head of Enforcement, emphasized that rule violations, no matter the individual involved, will result in consequences.
The outcome of this investigation follows statements from CFTC Chair Michael Selig, who recently negated the existence of similar markets on platforms regulated within the U.S., despite Kalshi operating under CFTC regulation.
Christy Goldsmith Romero, a former CFTC Commissioner, criticized the $65,000 fine as inadequate to deter future insider trading, particularly given that it involves high-level government officials. Romero remarked that the CFTC missed a crucial opportunity to send a decisive message against such trading at the federal level.
In contrast to other cases, the CFTC has not pursued criminal charges against Perez. Earlier this year, the agency brought commodities fraud charges against Google engineer Michele Spagnuolo, who profited significantly by trading on insider knowledge related to Google search markets at Polymarket. Similarly, Gannon Ken Van Dyke, a U.S. soldier, faced criminal charges for betting on the departure of Venezuelan leader Nicolás Maduro.
Both individuals have challenged the CFTC's jurisdiction over Polymarket, arguing that the platform is not subject to U.S. regulatory authority nor does it fall under the Commodity Exchange Act.
In a related action last month, the CFTC fined former Congressman George Santos $17,500 for trading on the likelihood of his attendance at the State of the Union address, which he manipulated via social media posts. Santos exited his positions with a profit of $17,569.98, and like Perez, is barred from trading for three years. Santos’s lawyer stated that there was no intent to deceive or manipulate the market.
Santos has since voiced his discontent with Kalshi, noting his past affiliation with rival Polymarket, which ended after the scandal surfaced. He has called for Kalshi to be classified as a gambling platform, labeling its CEO with derogatory terms and promising to campaign for regulatory changes against the company.
Previously, Santos received an 87-month prison sentence for identity theft and wire fraud after he allegedly misused donors' identities for unauthorized political contributions, although he was released after serving three months on Trump's orders. There has been no indication that Trump directly influenced the CFTC’s actions regarding either Perez or Santos, although he has endorsed stronger regulation of prediction markets as legal scrutiny intensifies nationwide.
