Federal regulators are investigating allegations that a longtime White House aide used advance access to President Donald Trump’s prepared remarks to place successful wagers on an online prediction market, a case that has drawn scrutiny from both government officials and the platform involved.

The investigation centers on Gabriel Perez, who has operated Trump’s teleprompter since the president’s first campaign in 2016. According to reports citing sources familiar with the matter, Perez allegedly earned more than $100,000 by trading on speech-related contracts offered by prediction market platform Kalshi. The trades reportedly involved wagers on whether certain words, topics, or phrases would be mentioned during presidential appearances.

The White House confirmed Thursday that Perez has been removed from his duties while the matter is reviewed. Officials described the situation as a violation of the ethical standards expected of administration personnel.

White House Press Secretary Karoline Leavitt said the president had been informed about the allegations and reacted strongly after learning of them. She described the situation as “unfortunate” and “a disgrace.”

A White House spokesperson also emphasized the administration’s ethics policies, stating, “The White House has strict ethics guidelines that we expect all staffers and officials to follow.”

Regulators Examine Speech-Related Trading Activity

The reported activity came to light after Kalshi identified unusual trading patterns in its “Mentions” market, which allows participants to speculate on whether specific terms will be spoken during public speeches.

According to sources cited in reports, federal investigators with the Commodity Futures Trading Commission (CFTC) reviewed wagers linked to more than a dozen Trump appearances over a three-month period. The speeches allegedly included a primetime address delivered in December, remarks at the World Economic Forum in Davos in January, a Medal of Honor ceremony in March, and the president’s State of the Union address earlier in the year.

Investigators reportedly concluded that Perez had access to information unavailable to ordinary market participants because of his role in preparing teleprompter content. Sources indicated that he often reviewed presidential remarks shortly before delivery and sometimes received last-minute edits directly from Trump.

The inquiry also reportedly found instances in which Perez adjusted or exited trades while speeches were underway. Investigators allegedly observed occasions when he changed positions after Trump departed from prepared remarks and skipped language that had appeared in the teleprompter script.

Trump himself has frequently acknowledged his tendency to move away from prepared text while speaking publicly.

“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 to the Detroit Economic Club in January.

Kalshi Reported Activity to Federal Authorities

Kalshi stated that it identified the suspicious transactions internally before referring the matter to regulators.

“Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators,” Kalshi Head of Enforcement Robert DeNault said.

The company later explained that its monitoring systems detected trading patterns that differed from normal market behavior. Kalshi said market makers also raised concerns, leading to a deeper review. According to reports, the platform discovered that the account holder worked for the federal government as a teleprompter operator.

Kalshi reportedly froze the account and restricted access to more than $90,000 connected to the trades while investigators reviewed the matter.

The company maintains policies prohibiting users from trading on information acquired through their employment. It recently strengthened compliance requirements by requiring users to disclose their workplace information.

DeNault previously explained the principle behind those rules, saying, “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.”

Settlement Discussions Reportedly Underway

Reports indicate that Perez has met with regulators and acknowledged at least some of the trading activity during interviews with investigators. Sources familiar with the matter cited by ABC News said federal prosecutors in Manhattan were notified during the review but declined to pursue a criminal case.

The CFTC is reportedly discussing a potential settlement that could require Perez to surrender profits linked to the trades and agree not to engage in similar activity in the future.

The investigation arrives as prediction markets face growing attention from lawmakers and regulators. In March, the White House circulated an internal memo warning staff members against using nonpublic information to participate in prediction markets. Additional restrictions followed elsewhere in government, including a Senate ban on staff participation in such trading activities.

Recent enforcement actions have also focused on alleged insider trading involving event contracts. The Department of Justice has brought cases against a U.S. special forces soldier accused of using sensitive information to trade on contracts related to Venezuelan President Nicolás Maduro and a Google employee accused of trading based on internal search data. Both defendants have pleaded not guilty.

The controversy also emerges amid continuing debate over prediction markets in the United States. Trump has expressed mixed views on the industry, criticizing the concept at times while also arguing that the country risks falling behind if companies such as Kalshi and Polymarket are prevented from operating.

“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.