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CFTC Fines Trump Teleprompter for Insider Trading on Speech Markets at Kalshi

By jili tutorial · September 1, 2026

CFTC Fines Trump Teleprompter for Insider Trading on Speech Markets at Kalshi

Former White House Staffer Exploited Inside Knowledge of Presidential Remarks

The Commodity Futures Trading Commission (CFTC) has fined Gabriel Perez, a former teleprompter operator for President Donald Trump, $65,000 for illegally wagering on what Trump would say during his speeches. The trades were placed on Kalshi, a CFTC-regulated prediction market platform.

In addition to the fine, Perez must forfeit roughly $100,000 in profits and faces a three-year ban from trading on regulated markets. According to the CFTC, “Perez traded in 14 Trump-mention markets and traded profitably in 39 of 43 contracts. Perez generated $107,539.02 in profits.” The regulator determined that Perez used his privileged access to speech scripts to gain an unfair informational edge.

The White House terminated Perez’s employment shortly after the story broke last month. Trump publicly called Perez a “disgrace” for his actions.

Perez Cooperated Fully With the Investigation

The CFTC acknowledged that Perez provided “extraordinary cooperation” during the probe, which helped resolve the case quickly. The Maryland resident admitted to reviewing Trump’s speech scripts before making trades and “fully accepted responsibility for his violative conduct.”

The agency also thanked Kalshi for its assistance. The exchange detected the insider trading through its own internal surveillance system and reported it to the CFTC.

Robert Denault, Kalshi’s Head of Enforcement, posted on X: “It doesn’t matter who you are: violate our rules or federal law, and you will face the consequences.” He noted that the platform’s investigation caught a White House staffer engaging in prohibited activity, and the CFTC and exchange have now imposed penalties.

This case surfaced shortly after CFTC Chair Michael Selig denied that such markets existed on a U.S.-regulated platform. Kalshi is fully regulated by the CFTC.

Former Commissioner Says Fines Are Too Low to Deter Future Abuse

Christy Goldsmith Romero, a former CFTC commissioner, criticized the $65,000 penalty as insufficient. “Generally, the CFTC should provide an incentive for defendants to cooperate,” Romero said. “But this is insider trading at the highest level of government – the White House. With this small penalty, the CFTC gave away the chance to send a strong message to deter future insider trading.”

Unlike some other high-profile cases, the CFTC chose not to pursue criminal charges against Perez.

Comparison to Other CFTC Insider Trading Cases

Earlier this year, the agency filed commodities fraud charges against Google engineer Michele Spagnuolo, who used inside knowledge to trade on Polymarket, earning $1.2 million from wagers on Google search-related markets. Separately, the CFTC brought criminal charges against U.S. soldier Gannon Ken Van Dyke, who bet on when Venezuelan leader Nicolas Maduro would leave office. Van Dyke had been involved in the operation that led to Maduro’s capture.

Both Spagnuolo and Van Dyke have argued that the charges should be dismissed, claiming the CFTC lacks jurisdiction over Polymarket’s international platform and that the markets do not meet the definition of swaps under the Commodity Exchange Act (CEA).

Last week, reports emerged of two additional impending insider trading cases on prediction markets—one involving a U.S. serviceman and another involving a KPMG employee.

CFTC Also Fined Former Congressman George Santos

The CFTC also fined former Congressman George Santos $17,500 last month for trading on whether he would attend the State of the Union address. The regulator said Santos manipulated market prices by posting about his attendance plans on social media, then exited his positions for a total profit of $17,569.98.

Santos’ lawyer issued a statement denying any intent to deceive: “Mr. Santos concealed neither his intention to attend nor his change of plans to not attend the SOTU from anyone. There was absolutely no intent to deceive any person, nor intent to manipulate any market.”

Like Perez, Santos received a three-year trading ban. His lawyer characterized the penalty as lenient, reflecting the minor nature of the offense: “The terms speak for themselves. This was a civil, administrative resolution; there are no criminal charges and no finding or admission of liability. The agreed financial terms are modest by any measure of a federal regulatory matter, and Mr. Santos has agreed to a limited, time-defined period concerning trading on registered platforms.”

Santos Rails Against Kalshi After Settlement

Since agreeing to the penalty, Santos has repeatedly criticized Kalshi. He previously served as a paid ambassador for rival platform Polymarket, but the company dropped him after the scandal broke. The day after the CFTC announced his fine, Santos posted on X calling for Kalshi to be reclassified as a gambling platform.

In a subsequent post, he insulted Kalshi CEO Tarek Mansour as “the Lebanese anchor baby” and called for co-founder Luana Lopes Lara to be deported to Brazil. He added, “Starting September I will be rallying the troops in DC and will fight tooth and nail to recategorize them as a gambling website!”

Santos was sentenced to 87 months in prison last year after pleading guilty to identity theft and wire fraud. He served only three months before Trump released him. It remains unclear whether Trump had any involvement in the CFTC cases against Santos or his former teleprompter. The president has publicly supported the CFTC’s role in regulating prediction markets amid ongoing legal challenges.