Gabriel Perez, the White House teleprompter operator, allegedly enriched himself by reading President Donald Trump’s prepared remarks shortly before delivery. The Commodity Futures Trading Commission ordered him to pay more than $172,000 in August after he placed bets on Kalshi mention markets. These markets attempt to predict specific words public figures will use during speeches. Perez is one of several individuals who have used inside information to place bets on prediction markets. An active-duty U.S. Army soldier also used confidential information to bet on Polymarket ahead of former Venezuelan President Nicolas Maduro’s capture earlier this year.
Demanding answers from the administration
Democratic Senators Elizabeth Warren and Jeff Merkley sent a letter to White House Counsel Will Scharf demanding answers about how the administration responds to these allegations. They stated that the White House has failed to take "meaningful action to address ethics concerns." The lawmakers requested information on whether other employees misappropriated insider knowledge to place bets, trades, or purchase contracts for personal gain. They also asked if training on nonpublic information is available to staff. Warren and Merkley argued that the administration must do more than send a warning memo. They urged officials to heed what other administrations have done, including implementing mandatory training.
"More action is required - from the President, from you, and from other White House officials - to provide the public with confidence in the integrity of the federal government under President Trump," the senators said. This demand comes as Warren takes on a larger role after Democrats took control of the Senate and House in last week’s midterm elections. She will lead the Senate Banking Committee, where she plans to end the current Wild West-style lack of oversight in this area. Rep. Ro Khanna, who is weighing a 2028 presidential bid, called for a ban on sports prediction markets on Tuesday. The White House did not immediately respond to a request for comment regarding the senators’ specific inquiries about internal controls and potential violations among other staff members.
