A White House technical assistant who operated President Donald Trump's teleprompter is reportedly in settlement talks with federal regulators over allegations of using inside knowledge to profit from bets on the president's speeches. Gabriel Perez, who has served as Trump's teleprompter operator since 2016, is accused by investigators with the Commodity Futures Trading Commission (CFTC) of making more than $100,000 by placing bets on prediction markets.

The alleged scheme involved the prediction market Kalshi, where users can bet on whether specific words, phrases, or topics will be mentioned during public speeches. According to sources familiar with the matter, Kalshi's surveillance team flagged suspicious trading activity related to President Trump's speeches and referred the matter to the CFTC. Kalshi has confirmed it alerted its regulator and is cooperating with the investigation.

Investigators reportedly found that Perez placed bets on more than a dozen of Trump's speeches over a three-month period, including major addresses like the State of the Union, a primetime address in December, a speech at the World Economic Forum in Davos, Switzerland, and remarks during a Medal of Honor ceremony. Perez allegedly leveraged his position, which often involves seeing prepared remarks and last-minute edits directly from the President, to gain an advantage.

Following the discovery of suspicious activity, the White House issued an internal memo in March warning staff against using nonpublic information to place bets on prediction markets. A White House spokesperson stated that the staffer in question is fully cooperating with the CFTC and that the administration expects all staffers to follow strict ethics guidelines.

Perez continues to work as a teleprompter operator for President Trump. He has previously faced scrutiny from congressional and federal investigators regarding edits made to speeches surrounding the January 6, 2021, attack on the U.S. Capitol. Trump is known for frequently deviating from his prepared remarks.

The CFTC has declined to comment on the ongoing investigation. The Commodity Futures Trading Commission is the primary federal regulator overseeing prediction markets like Kalshi, which operate as regulated exchanges for trading futures and options contracts on various events.

This case highlights potential vulnerabilities within prediction markets and the challenges regulators face in preventing insider trading, even in contexts involving public figures and speeches. The outcome of Perez's settlement talks with the CFTC could set a precedent for future cases involving alleged misuse of nonpublic information in such markets.

Further details regarding the specifics of the trades, the exact amount won, and the terms of any potential settlement remain undisclosed as the investigation and negotiations continue. The incident also raises questions about the internal controls and oversight mechanisms in place within the White House regarding staff activities outside of their official duties.