A longtime teleprompter operator for President Donald Trump has been placed on unpaid administrative leave after federal investigators reportedly concluded that he used advance knowledge of the president’s prepared speeches to make profitable wagers on a prediction market. According to sources familiar with the investigation, the employee allegedly earned more than $100,000 through the trades and is now negotiating a settlement with federal regulators.
Sources told ABC News that Gabriel Perez, who has served as Trump’s teleprompter operator since 2016, is accused of placing bets on more than a dozen presidential speeches using inside knowledge of their contents. Investigators with the Commodity Futures Trading Commission (CFTC) reportedly believe the wagers generated profits exceeding $100,000.
According to those sources, the investigation began after prediction market platform Kalshi detected suspicious activity involving its “Mentions” market, where participants wager on whether particular words, phrases, or topics will be spoken during public addresses. The company alerted the CFTC after identifying the unusual betting pattern.
“Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators,” Kalshi’s head of enforcement, Bobby DeNault, said in a statement provided to ABC News.
Responding to the report on Thursday, White House Press Secretary Karoline Leavitt confirmed that Perez has been placed on unpaid administrative leave. She said she discussed the matter with President Trump, who considered the allegations a “disgrace” and personally decided that Perez should be suspended without pay.
Leavitt also said she is not aware of any other White House employees who participated in similar trading activity.
“The White House has strict ethics guidelines that we expect all staffers and officials to follow,” said White House spokesperson Davis Ingle when contacted by ABC News.
Investigators reportedly found that Perez placed wagers on numerous Trump speeches over a three-month period, including the president’s February State of the Union address, a December primetime speech, his January appearance at the World Economic Forum in Davos, Switzerland, and remarks delivered during a Medal of Honor ceremony in March.
Following those events, the White House circulated an internal memorandum in March reminding employees that they are prohibited from using nonpublic information to place bets on prediction markets, according to sources previously cited by ABC News.
Perez has remained one of President Trump’s teleprompter operators throughout the investigation, a position he has held since Trump’s first presidential campaign in 2016.
Sources said Perez is typically among the final staff members to review the president’s prepared remarks before delivery and frequently receives last-minute edits directly from Trump. He also drew scrutiny from congressional and federal investigators over edits made before Trump’s remarks surrounding the January 6, 2021, attack on the U.S. Capitol.
Despite relying on prepared speeches, Trump is well known for departing from the teleprompter during his remarks.
“You know, when you go up here, you take a big chance, especially me because I go off teleprompter about 80% of the time,” Trump said during remarks in January to the Detroit Economic Club, another speech federal investigators believe was among those Perez betted on.
Investigators also reportedly uncovered instances in which Perez withdrew certain wagers while speeches were still underway after Trump skipped sections that contained words Perez had predicted would be spoken.
Sources familiar with the case said Perez acknowledged making some of the trades during an interview with regulators. They added that although the CFTC referred the matter to federal prosecutors in Manhattan, prosecutors ultimately declined to pursue criminal charges.
Negotiations between Perez and the CFTC are ongoing. According to sources, regulators are considering a settlement that would require him to surrender any profits and agree not to engage in similar trading in the future.
Kalshi prohibits users from placing bets based on confidential information obtained through their employment.
Last month, the company strengthened its compliance policies by requiring users to disclose where they work.
“If you have information by virtue of your job or your employment, something that you have a legal duty surrounding, and you have an obligation not to take that, misappropriate it for yourself,” DeNault told ABC News in May.
Federal authorities have recently brought the first insider-trading cases involving prediction markets. One case involves a U.S. special forces soldier accused of wagering on the capture of Venezuelan President Nicolás Maduro, while another involves a Google employee accused of using internal search data to place bets. Both defendants have pleaded not guilty.
Although President Trump has expressed reservations about prediction markets in the past, he said in April that he supports allowing companies such as Kalshi and Polymarket to operate so the United States does not fall behind other countries.
“Well the whole world, unfortunately, has become somewhat of a casino, and you look at what’s going on all over the world in Europe and every place they’re doing these betting things. I was never much in favor of it. I don’t like it conceptually, but it is what it is,” Trump told reporters.
Last October, Trump Media and Technology Group announced that it was exploring the possibility of launching its own prediction market platform.
{Matzav.com}