WILLIAM BRANGHAM: The Pentagon today is strongly# denying a report by The Financial Times that## Defense Secretary Pete Hegseth's stockbroker# was seeking to make large investments in major## defense companies in the days right before# the U.S.

and Israel first struck Iran.

That report is raising yet more# concern about the many people in## and around the Trump administration who# seem to be profiting in unusual ways.

White House correspondent Liz# Landers takes a closer look.

LIZ LANDERS: Early last week, as the United States# and Iran continued to exchange strikes in the## Middle East, there was a spike in the crude oil# futures trading volume around 6:49 a.m.

Eastern## time.

A few minutes later, at 7:05 a.m., the# president posted on his social media platform## that he was suspending strikes on Iranian power# plants and energy infrastructure for five days.

The stock market opened up and oil prices went# down.

A combined $800 million in trades was## made.

The timing of the market movement# could be coincidental, but it produced## a windfall all the same.

And traders aren't# just getting rich in traditional marketplaces.

Polymarket, a prediction marketplace# where individuals can bet on anything## from sports to politics, has seen several# users bet specifically on U.S.

military## action related to Iran and rake in money.# Before the president's latest announcement## claiming the U.S.

and Iran were actively# engaged in productive talks, several newly## created accounts bet nearly $160,000 that a# cease-fire will happen by March 31 or April 15.

After the president's comments, the value# of those bets doubled and stand to pay out## to $1 million if the cease-fire happens# by April 15.

Who's behind these bets?## Polymarket and other online# prediction market sites like## Kalshi allow users to place bets anonymously# so the identity of the bettor remains unknown.

But potentially lucrative payouts like# these have raised concerns about the## possibility of insider trading, says# David Hill, a journalist who writes## about gambling for "Rolling Stone" and hosts# the podcast "American Gambler Book Club."

DAVID HILL, American Gambler Substack: I# think that it's right for us to assume that## there is a lot of insider trading# that goes on prediction markets,## just as there's a lot of insider trading# that goes on in the stock market.

You know,## lots of people know the outcomes of these things# prior to the public knowing them.

And so some## people are going to be opportunistic# about that and take advantage of it.

LIZ LANDERS: Polymarket, which calls itself# the world's largest prediction market,## announced new rules last week clarifying three# categories of prohibited insider trading conduct,## banning trading that involves# stolen confidential information,## illegal tips, and trading by# people who can influence outcomes.

They even specifically give an example about# military members betting on military operations,## advising that's banned.

It's raising questions# about the morality of betting on these actions,## which inevitably involve life-or-death situations.

DAVID HILL: I personally would not want to make a# bet on whether or not somebody would live or die.

I think that one of the things# that's a concern here is that,## if there is a market on something like death,# that there is sort of moral hazard involved,## right, and that people shouldn't be allowed# to wager on predicting somebody's death,## not just because it's moral, but also# because there may be -- that it creates## these sort of perverse incentives, and that# people's lives are involved and are at stake.

LIZ LANDERS: Kalshi told us that# government employees are not permitted## to place predictions on geopolitical# markets and said it does not comment on## potential investigations.

Polymarket did# not respond to questions from PBS News.

There are at least eight bills in Congress# seeking to regulate prediction markets,## including a bipartisan House bill that# would bar elected government officials,## senior federal staffers and their families# from trading in prediction markets.

But these platforms aren't the only way that# people are profiting off of politics these## days.

For others with ties to the president# or who claim to have connections to him,## there's another lucrative business opportunity# that's emerged, lobbying for presidential pardons.

Trump's prolific use of his clemency powers# has been controversial from the beginning.

DONALD TRUMP, President of the United States:# We hope they come out tonight, frankly.

LIZ LANDERS: Hours after he# was sworn in for a second term,## he pardoned more than 1,500 defendants# involved in the January 6 Capitol attack.## Dozens of other high-profile pardons have# followed, involving political figures,## business leaders and people with personal# connections to the president or his allies.

And lobbyists have stepped in# to help facilitate who can get## through to the administration, earning millions.

Ken Vogel is a reporter for The New York Times.

KEN VOGEL, The New York Times: In the first# year of Trump 2.0, we saw $5.2 million in## lobbying fees disclosed for pardon-related# or clemency-related lobbying efforts.

And## that was eight times more than what we saw in# the final year of the Biden administration.

LIZ LANDERS: Vogel says this has created## a sort of pay-for-play mentality# during the Trump administration,## where people with money and connections# can skip to the front of the pardon line.

KEN VOGEL: It's created this sort of pardon# industrial complex that in some ways seems to## turn on its head the idea that the people who# are most deserving All right,e the ones who## are going to get clemency, and instead# sort of reward people who either have## connections or the ability to pay people who have# connections to get directly to President Trump.

LIZ LANDERS: And while President Trump in## his speeches says attacking# fraud is a major priority... DONALD TRUMP: We're cracking# down on the Somali scams,## ending the brazen and shameless# theft of taxpayer dollars.

(CHEERING) LIZ LANDERS: ... his decisions about who gets# a pardon seem to be at odds with th.. than 50 of the pardons and commutations he# has made in his second term are for fraud.## White-collar offenses such as money laundering,## bank fraud and wire fraud are among the# most frequent crimes he has wiped clean.

In a statement, the White House press secretary,# Karoline Leavitt, said -- quote -- "President## Trump exercises his constitutional authority to# issue pardons and commutations at his discretion.## Anyone spending money to lobby for pardons# is foolishly wasting their money.

The Trump## administration has a robust pardon review# process, which includes White House counsel,## the Department of Justice and ultimately# the president himself as the final decider."

Many of the people granted clemency# by Trump had their financial penalties## and restitution forgiven, totaling tens of# millions of dollars.

But for their victims: KEN VOGEL: They're appalled.

To them, this is# sort of an, like, insult to injury.

And these## pardons and in some cases even the commutations# wipe away those obligations, those financial## obligations.

So this is sort of taking money out# of the victims' pockets, or at least stopping an## avenue that might otherwise result in them# getting at least some compensation for the## financial losses that they have incurred at the# hands of these people who have gotten pardons.

LIZ LANDERS: For people in the White House# orbit, there is potentially big money to be## made trading in the currency of access to either# information or to the ear of the president.

For the "PBS News Hour," I'm Liz Landers.