DOJ Puts MAGA Republican Under Investigation?

Rep. Anna Paulina Luna, R-Fla., says the Department of Justice has officially cleared her after confirming she was never the subject of a criminal investigation over allegations involving a prediction market wager tied to President Donald Trump’s 2024 vice presidential selection.

The DOJ’s statement directly contradicts weeks of speculation following media reports that suggested Luna was under federal scrutiny. The department also confirmed it never received a criminal referral from the Commodity Futures Trading Commission (CFTC), effectively closing the door on claims that she faced a federal investigation.

DOJ Confirms No Criminal Investigation

According to a July 22 letter from Associate Deputy Attorney General Diego Pestana, the Justice Department “at no point had an open investigation” into allegations that Luna engaged in criminal wrongdoing, including claims involving insider trading on prediction markets.

The letter, which Luna later shared publicly on X, further stated that the DOJ never received a criminal referral from the CFTC regarding the allegations.

Pestana explained that if the CFTC believed criminal laws had been violated, it would have referred the matter to the Justice Department or one of its U.S. Attorney’s Offices. No such referral was ever made.

The revelation was first reported by Axios.

Allegations Centered on Trump’s VP Selection

The controversy began after a July 18 Wall Street Journal report alleged Luna shared advance knowledge of Trump’s decision to select JD Vance as his running mate with conservative commentator Rogan O’Handley, better known online as “DC Draino.”

According to the report, O’Handley allegedly used that information to place a successful wager on the political prediction market platform Polymarket before Trump’s official announcement.

Both Luna and O’Handley immediately denied the accusations.

O’Handley said he never received confidential information and never traded using inside knowledge.

Luna also rejected the claims, saying she had no advance knowledge of Trump’s decision and joking that she was not “telepathic.”

Luna Calls Story a Political Attack

After releasing the DOJ letter, Luna accused the Wall Street Journal of publishing what she described as false and politically motivated reporting.

She argued the story relied heavily on an anonymous source and created the false impression that she had been under criminal investigation.

Luna also revealed that the individual who made the allegations has reportedly been referred for criminal investigation for allegedly providing false information to a federal agency.

She warned that media organizations repeating the claims should retract or correct their reporting.

According to Axios, Luna’s attorneys have already sent legal demands to at least one news organization seeking removal of published articles, a formal retraction, preservation of reporting materials, and other actions in anticipation of possible legal proceedings.

What Is Polymarket?

Prediction markets such as Polymarket and Kalshi allow users to wager on the outcome of political elections, economic developments, sporting events, and other real-world events.

Because participants can profit from accurate predictions, federal regulators have increased oversight to ensure no one uses confidential government or campaign information to gain an unfair financial advantage.

While legal in certain jurisdictions, these platforms have attracted growing attention from regulators as their popularity has surged during recent election cycles.

Federal Authorities Continue Investigating Other Prediction Market Cases

Although the DOJ says Luna was never investigated, federal authorities continue pursuing several unrelated cases involving prediction market platforms.

One involves Gabriel Perez, a former teleprompter operator for President Trump, who reportedly has been negotiating a settlement with the CFTC over allegations that he earned more than $100,000 by placing wagers based on nonpublic information connected to Trump’s speeches.

In another case, U.S. Army Special Forces Master Sgt. Gannon Ken Van Dyke has pleaded not guilty after prosecutors accused him of using classified intelligence concerning Venezuelan leader Nicolás Maduro to make profitable trades on Polymarket.

Federal prosecutors allege Van Dyke earned more than $400,000 through the trades in what authorities have described as the first criminal insider trading case involving a U.S. prediction market platform.

Luna Continues Ethics Reform Push

The controversy comes as Luna continues advocating for stronger ethics rules governing lawmakers’ financial activity.

She has been a vocal supporter of legislation to ban members of Congress from trading individual stocks and has also backed tougher restrictions on lawmakers participating in prediction markets.

Earlier this year, the Senate approved legislation that would prohibit senators and Senate staff from trading on prediction market platforms such as Polymarket and Kalshi.

The House has not yet approved similar legislation.

Bottom Line

The Justice Department’s letter leaves little doubt about Luna’s legal standing. Federal officials say there was never an active DOJ investigation, and the department never received a criminal referral from the CFTC regarding the allegations.

Luna says the official confirmation completely vindicates her, while her legal team continues pursuing action against media outlets that reported she was under investigation. At the same time, the broader debate over prediction markets, insider information, and ethics in Washington is likely to continue as regulators increase scrutiny of these rapidly growing betting platforms.