CFTC Orders Gabriel Perez to Pay $172,000 for Insider Trading of Mention Market Event Contracts
TL;DR — CFTC settled with Gabriel Perez, a former White House teleprompter operator, for using nonpublic speech information to trade presidential mention market contracts. He must disgorge $107,539.02 in profits, pay a $65,000 penalty, and serve a three-year trading ban. KalshiEX assisted the probe.
SCCG Take — The discounted penalty for cooperation shows CFTC incentives at work in prediction market enforcement while the trading ban reinforces boundaries on government-derived information.
The Commodity Futures Trading Commission announced an order filing and settling charges against Gabriel Perez for misappropriating material, nonpublic information obtained through his federal government employment in order to trade event contracts on a prediction market platform for his personal benefit.
Gabriel Perez worked as a teleprompter operator for the White House. In that position he had access to presidential speeches prior to delivery. Between December 2025 and February 2026, Perez traded presidential mention market contracts, which are event contracts reflecting words or phrases the President may use during speeches. He misappropriated that information in breach of his duty of trust and confidence, generating profits totaling $107,539.02.
Under the order Perez must disgorge $107,539.02 and pay a civil monetary penalty of $65,000. The penalty reflects a substantial discount under the Division of Enforcement’s new cooperation advisory because of Perez’s exemplary cooperation. Perez agreed to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations. The order imposes a three-year trading ban.
The CFTC appreciates the assistance of KalshiEX in this matter, according to its enforcement release.
Misappropriation Through White House Speech Access
The order finds that Perez used advance access to presidential speeches to trade the mention market contracts. Those contracts function as swaps tied directly to specific language used in the speeches. All trades occurred while Perez held the government position that gave him the nonpublic information.
Order Terms and Cooperation Discount
The settlement requires full profit disgorgement of $107,539.02, the $65,000 penalty, a three-year trading ban, and a cease-and-desist obligation. The reduced penalty stems from Perez’s cooperation with the CFTC. The agency’s acknowledgment of KalshiEX assistance completes the reported elements of the resolution.
Reporting: CFTC Enforcement Actions
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
First major insider trading case in prediction markets sets the compliance bar for event contracts tied to nonpublic information.
This is the first enforcement action we've seen targeting insider trading in prediction markets, and it's a clear signal that the CFTC views event contracts the same way it views traditional derivatives. For operators, data providers, and platforms building in this space, the message is simple: information controls and surveillance matter now, not later.
- Former White House staffer traded presidential mention contracts using advance speech access, netting $107K in profits
- CFTC imposed full disgorgement, $65K penalty (reduced for cooperation), and three-year trading ban
- KalshiEX assisted investigation, signaling platforms must build surveillance and reporting infrastructure
SCCG angle: SCCG works with platforms launching or scaling event contract offerings to build compliance frameworks from day one—connecting you to surveillance tech providers, regulatory counsel in our network, and operators who've navigated CFTC scrutiny. We help you avoid becoming the next cautionary tale.
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