Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—Teleprompter operator who made money on ‘Trump mention market contracts‘ settles with CFTC, (Aug 31, 2026)

By Rebecca E. Hoffman, J.D.

The consent order mentioned that his “extraordinary cooperation” warranted a reduction in the monetary penalty obligation.

A technical advisor to President Trump, who profited from having knowledge of the content of Trump’s speeches in advance, agreed to the CFTC’s entry of an order requiring him to disgorge his profits and prohibiting him from trading for three years (In the Matter of Gabriel Perez, CFTC Docket No. 26-06 (Aug. 28, 2026)).

Mention market. The order explained that “[a] mention market is a type of event contract where traders take a ‘Yes’ or ‘No’ position on whether a specific word, phrase, or term will be spoken, posted, or otherwise mentioned during a defined event or time period,” and that KalshiEX LLC lists “a variety of Trump mention market contracts.”

Between December 2025 and March 2026, the order said, the respondent used material, nonpublic information for his own financial benefit. As technical advisor running the teleprompter during Trump’s speeches, the respondent had access to that content before the speeches were delivered. He would read the speech and place “Yes” or “No” trades based on whether a specific word or phrase appeared or did not appear in the speech. According to the order, the respondent made money in 39 out of 43 contracts, netting $107,539.02.

The CFTC noted that the respondent, as a White House employee, understood that the President’s speeches are confidential, and that he was expected to follow the “Standards of Ethical Conduct for Employees of the Executive Branch,” which provides that “[e]mployees shall not engage in financial transactions using nonpublic Government information or allow the improper use of such information to further any private interest,” 5 C.F.R. § 2635.101(b)(3).

Extraordinary cooperation. When the CFTC’s Division of Enforcement reached out to the respondent, he immediately cooperated with staff, admitting to reading the speeches ahead of time and trading on that information. The Commission awarded “cooperation credit,” reducing his civil monetary penalty by 40 percent, based on his “extraordinary cooperation.”

The order explained that the event contracts at issue qualify as swaps because payout occurs based on the occurrence or nonoccurence of a future event; in this case, whether or not President Trump says a particular word or phrase during a speech. It notes that the words Trump says “have an immediate impact on global financial markets.” The respondent’s conduct violated Section 6(c)(1) of the Act and Regulation 180.1(a)(1) and (3), as applied to swaps, in that:

• The respondent used confidential information that reasonable persons would view as important in deciding whether to choose “Yes” or “No” in a Trump mention market.

• The information was confidential at the time.

• The respondent owed a duty of trust and confidentiality to the U.S. government under the ethics standards, which he breached.

• The respondent’s conduct was at least reckless, since it clearly departed from standards of ordinary care.

• The respondent’s conduct was associated with swaps.

• The respondent profited financially.

Further, the respondent violated Sections 4c(a)(3) and 4c(a)(4)(C) of the CEA, since he traded event contracts based on misappropriated confidential information that he acquired as a government employee.

The respondent was ordered to cease and desist from continued violations, to disgorge all profits, and to pay a civil monetary penalty of $65,000. In addition, he was barred from trading for three years, and consented to continued cooperation.

The case is No. 26-06.

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