Senators Elizabeth Warren and Jeff Merkley asked the White House whether former staffer Gabriel Perez should receive clemency after settling federal charges for betting on Trump speech outcomes on Kalshi.
On November 12, 2026, Senators Elizabeth Warren (D‑Mass.) and Jeff Merkley (D‑Ore.) formally asked White House counsel Will Scharf whether President Donald Trump should grant clemency to Gabriel Perez, a former White House teleprompter operator who settled federal charges for betting on the content of Trump’s speeches through the prediction‑market platform Kalabi.
According to the CFTC’s August order, Perez placed trades on Kalshi’s “mention” contracts, which settle based on whether a speaker uses specific words. The trades were made while he was employed at the White House and spanned from December 2025 to March 2026. Kalshi investigated the activity and referred the matter to regulators, leading to a settlement in which Perez surrendered $107,539.02 of profits and paid a $65,000 civil penalty, reduced in recognition of his cooperation. He also agreed to a three‑year prohibition on trading in prediction markets.
The senators’ letter, dated Nov. 9, contains seven questions and seeks responses by Nov. 23. Beyond the clemency request, they inquire whether the White House is aware of other staff who may have used non‑public government information for betting or trading, whether employees receive training on such misconduct, and whether internal ethics agreements have been updated. They also request details on the internal investigation into Perez, his employment status after the incident, and any communications with the CFTC or Justice Department. The memo cited by NPR, which warned staff against using insider information on platforms like Kalshi and Polymarket, was also requested.
Warren and Merkley highlighted the Trump family’s financial interests in the prediction‑market sector, noting Donald Trump Jr.’s advisory roles and stakes in both Kalshi and Polymarket, as well as the announced development of Truth Predict by Trump Media in partnership with Crypto.com. The senators suggest that these connections raise broader concerns about conflicts of interest and the need for clearer guidance on the use of non‑public information by government employees.
The White House’s response, due by Nov. 23, will indicate whether clemency is being considered and may prompt further scrutiny of ethics policies for federal staff. Follow‑up reporting will track any additional disclosures about other employees’ involvement in prediction‑market trading and potential regulatory actions by the CFTC or Justice Department.
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