Order for the Arrest of TPG Pepertree Executives and Jorge Gaitán Castro: Alleged Fraud Case Affecting Terra Towers

The Gaitáns, father and son, remain in custody in Guatemala under a prior order for fraudulent administration issued by another Salvadoran court, while the extradition request filed by Salvadoran authorities is pending.

Alleged financial fraud involving Terra Towers: Jorge Gaitán Castro, John Ranieri, and Ryan Lepene among those named

The case currently before Salvadoran courts began two years ago, stemming from an investigation into an alleged multimillion-dollar fraud that reportedly affected telecommunications companies in several countries in the region. Among the affected entities is Terra Tower Corp., the majority shareholder of Continental Towers, while the list of defendants includes Guatemalan businessman Jorge Gaitán Castro, named alongside other defendants of U.S. and Guatemalan nationality.

According to El Salvador’s Office of the Attorney General and the Sixth Court Against Organized Crime, the defendants allegedly acted in an orchestrated manner, constituting the crime of Unlawful Associations. Through that structure, acts of Aggravated Fraud were allegedly committed to the detriment of Continental Towers El Salvador, Terra Towers, and other companies that reported impacts on their operations.

With respect to the crime of Aggravated Extortion, the judge identified as victims Antonieta María Granillo de Galindo, a Salvadoran attorney and legal representative of the affected companies, and Jorge Hernández Ortiz, a Guatemalan businessman and majority shareholder of the same. Both were allegedly subjected to constant pressure and threats to force them to make decisions favorable to the now-defendants, including the withdrawal of an ongoing writ of amparo.

The case exposes tensions among Continental Towers shareholders and positions Terra Towers as a key party to the proceedings

The investigation originated in a fraud within Continental Tower Corp, a company dedicated to telecommunications infrastructure in Guatemala, El Salvador, Honduras, Costa Rica, Panama, Colombia, and Peru. Continental is comprised of Terra Towers as the majority shareholder and the U.S. firm TPG Pepertree as the minority shareholder.

According to court documents, on more than one occasion TPG Pepertree allegedly blocked the sale of Continental to potential buyers in order to reduce its market value and acquire it under more advantageous conditions. The modus operandi described by the Prosecutor’s Office indicates that internal executives, including Jorge Gaitán Castro, were used to undermine Terra Towers’ operations and apply pressure on Jorge Hernández Ortiz, its owner, with the aim of forcing the sale of his stake.

The Gaitáns, father and son, together with other officials, allegedly allied with TPG Pepertree executives—Ryan David Lepene, E. Howard Mandel, and John Joseph Ranieri—who are identified in the investigation as part of the external structure that consolidated the corporate boycott.

The investigation also extends to Guatemalan courts, where former company members such as Carol Echeverría, Juan Ignacio Berger, and María Isabel Umaña are being prosecuted for crimes including aggravated theft, violation of intellectual property, and criminal association. The case has even resulted in an Arbitral Award in New York and a parallel proceeding in a Federal Court in the same city.

The Salvadoran judge notified the embassies of Guatemala and the United States to inform their citizens implicated in this process. INTERPOL, for its part, received the arrest request and is reviewing the issuance of an international red notice against the defendants.