Former Representative Denies Insider Trading Allegations After Prediction Market Referral

A former member of Congress denied allegations of insider trading and described a Department of Justice inquiry as preposterous in a statement posted on X. The former representative said his legal team learned of the possible inquiry through an NPR report and is now in contact with officials.

He asked media outlets to stop contacting him while the matter proceeds and stated he will comment further when appropriate.

Kalshi reported the trading activity to the Department of Justice and the Commodity Futures Trading Commission after detecting bets that appeared to contradict the individual's public statements about attending a scheduled address. Federal regulators are examining whether nonpublic information was used to influence market odds.

A person familiar with the matter told the Associated Press that the trades were placed ahead of the event and raised questions because they seemed inconsistent with earlier public comments.

The same individual was arrested in 2023 on federal charges including wire fraud, identity theft, and financial misconduct tied to congressional campaigns. Prosecutors alleged misuse of donor funds and fabrication of background details, leading to expulsion from the House of Representatives.

The person pleaded guilty in 2024 and received a sentence of more than seven years. Clemency was later granted, resulting in release after a portion of the sentence had been served.