I’m sipping my coffee and reading about the latest news, and folks, this one’s a doozy. The Trump administration has settled an insider-trading case against President Donald Trump’s longtime teleprompter operator, Gabriel Perez. It seems Perez was using his access to Trump’s speeches to make some pretty savvy bets on prediction markets, and he ended up making over $107,000 in the process. Not bad for a side hustle, if you ask me. The Commodity Futures Trading Commission (CFTC) fined Perez $65,000 and he’s also giving up his ill-gotten profits. I guess you could say he got a little too comfortable with his access to sensitive information.
The CFTC said Perez “owed a duty of trust and confidentiality to the US government” but he breached those duties by using nonpublic information to make trades. It’s not like he was just guessing, either – he placed 49 trades and won 39 of them. That’s some impressive odds. I’m no expert, but it seems like he had a bit of an unfair advantage.
Perez is also banned from using prediction markets for three years, which seems like a pretty light punishment considering the circumstances. Former CFTC commissioner Christy Goldsmith Romero thinks the fine was too small and that it sends the wrong message. Maybe she’s right, but I’m just a simple guy drinking coffee and reading the news.
The CFTC’s investigation found that Perez was using confidential information to make trades on markets about what Trump would say at public events, including the State of the Union address and various rallies. It’s not exactly surprising that someone with access to that kind of information would try to use it to their advantage, but still – it’s not exactly ethical, either.
The chairman of the CFTC, Michael Selig, has been a big supporter of the prediction market industry, but he’s also vowed to crack down on insider trading. I guess this case is a bit of a test for him, then. Trump has praised Selig’s leadership in the past, so it’ll be interesting to see how this all plays out.
In the end, it seems like Perez got a bit of a slap on the wrist for his actions. Maybe it’s just me, but it seems like the punishment should fit the crime – or at least be a bit more severe than a $65,000 fine. Oh well, that’s just my two cents. As I finish up my coffee, I’m left wondering what other interesting stories the day will bring. And who knows, maybe someday we’ll see a prediction market for how many times a politician will say a certain phrase in a speech – now that’s a bet I’d be willing to take.
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
