President Donald Trump's longtime teleprompter operator is reportedly negotiating a settlement with federal regulators after allegedly using advance knowledge of the president's prepared remarks to place winning bets on a prediction market, according to ABC News.

The report, citing sources familiar with the investigation, said Gabriel Perez, a White House technical assistant who has operated Trump's teleprompter since the 2016 campaign, is under investigation by the Commodity Futures Trading Commission (CFTC).

Investigators reportedly believe Perez made more than $100,000 betting on Kalshi markets tied to whether certain words or phrases would appear in Trump's speeches.

According to ABC, Perez allegedly placed wagers on more than a dozen Trump appearances over a three-month period, including the president's February State of the Union address, a January speech to the World Economic Forum in Davos, Switzerland, and remarks at a March Medal of Honor ceremony.

Kalshi said it alerted regulators after its internal monitoring flagged suspicious trading activity.

"Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators," Kalshi lead attorney Bobby DeNault said in a statement provided to ABC.

White House spokesperson Davis Ingle told the outlet, "The White House has strict ethics guidelines that we expect all staffers and officials to follow. The staffer in question is fully cooperating with the CFTC."

Perez continues to serve as one of Trump's teleprompter operators, a position that gives him early access to many of the president's prepared remarks. However, Trump is well known for frequently departing from his prepared text during speeches.

"You know, when you go up here, you take a big chance, especially me because I go off teleprompter about 80% of the time," Trump said during remarks to the Detroit Economic Club in January.

ABC reported investigators found instances in which Perez allegedly backed out of wagers during speeches after Trump skipped sections of prepared remarks containing words Perez had bet would be used.

The outlet also reported that Perez acknowledged some of the trades during an interview with regulators. Federal prosecutors in Manhattan were notified of the matter but declined to open a criminal investigation, according to ABC.

Sources told the network the CFTC is discussing a civil settlement that would require Perez to forfeit any profits and refrain from similar trading in the future.

Kalshi bars users from placing bets based on confidential information obtained through their employment and recently updated its policies to require users to disclose where they work.