A former White House teleprompter operator has been ordered to pay more than $172,000 in penalties and disgorged profits after using inside access to place illegal online bets on political speeches. Federal regulators announced the enforcement action after discovering the worker used draft texts of upcoming presidential addresses to wager on event outcomes.
According to the Commodity Futures Trading Commission (CFTC), Gabriel Perez leveraged confidential access to presidential script databases to execute trades on online prediction markets. The regulatory agency confirmed in an official statement on Friday that Perez must surrender all financial gains tied to the scheme and pay an additional civil penalty.
Federal Regulators Sanction Former Staffer for Insider Trading Scheme
The Commodity Futures Trading Commission reported that Perez amassed $107,539.02 in illegal profits by placing trades prior to public broadcasts. In addition to giving up those earnings, Perez was ordered to pay a civil monetary penalty of $65,000, bringing the total financial judgment to more than $172,000. Federal officials noted that the illegal activity involved wagering on specific phrases and topics before President Donald Trump delivered his remarks.
The agency highlighted that White House staff members and technical contractors are strictly prohibited from using non-public government information for personal financial advantage. By placing bets on event contracts with advance knowledge of prepared remarks, Perez violated federal commodities laws governing market integrity and breach of trust.
How the Speeches Were Used for Online Betting
As part of his routine technical duties, Perez had direct access to final speech drafts and teleprompter software files shortly before live broadcasts. According to details released by the CFTC, he used that privileged positioning to predict specific outcomes on binary option platforms. These platforms allow users to bet yes-or-no questions on political events, such as whether a speaker will mention specific policies, foreign leaders, or economic statistics during an address.
Because the teleprompter text contained exact wording, Perez was able to place winning wagers with virtually no financial risk before the speeches began. The agency emphasized that exploiting confidential government data to manipulate or trade on prediction markets undermines public trust and violates federal trading statutes.
What Laws Prevent Insider Trading in Political Markets?
The enforcement action relies on federal rules enforced by the Commodity Futures Trading Commission that prohibit misuse of confidential information derived from public employment. While political prediction markets have grown in popularity across digital trading platforms, regulators maintain strict oversight to prevent individuals with access to advance government data from participating.
Under federal regulations, government employees and contractors sign strict non-disclosure agreements regarding internal operations. The CFTC warned that using proprietary or non-public official records to participate in financial derivative contracts will result in civil prosecution, mandatory forfeiture of all profits, and substantial fines.
What Happens Next for Event Contracts Oversight?
The resolution of this case comes amid heightened scrutiny of political prediction markets and event-based derivatives in the United States. Federal regulators continue to monitor online platforms offering event contracts to ensure trades are conducted fairly and without insider manipulation.
The financial penalties imposed against Perez must be remitted directly to federal authorities. The CFTC confirmed that it will continue pursuing enforcement actions against individuals who attempt to exploit non-public government information in regulated financial and commodity markets.
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