The Legal Developments Between Terra Towers S.A. and Peppertree Following the Acquisition by TPG

The transaction announced as part of TPG’s expansion strategy in the emerging markets digital sector, linked to Terra Towers S.A., is currently involved in international legal proceedings. On July 2, 2025, TPG Inc., one of the US-based investment funds, formalized the purchase of Cleveland-based Peppertree Capital Management for approximately $960 million. The transaction, which included cash, shares, and contingent payments, was presented by the company as part of the creation of a $7.8 billion fund for telecommunications and digital infrastructure projects in Latin America and other regions.

Weeks after the announcement, international legal proceedings were initiated in relation to Peppertree’s previous operations, which were already underway prior to its acquisition by TPG.

The Sixth Court Against Organized Crime in San Salvador, El Salvador, recently issued provisional arrest warrants and a red notice request to INTERPOL against three partners and executives of the current TPG Peppertree, accused of being part of an alleged criminal network linked to fraud and extortion against telecommunications companies in Latin America, including Terra Towers S.A.

Main Parties Involved in the Terra Towers S.A. Court Case: Jorge Gaitán Castro, Ryan David Lepene, and Other Executives

The defendants are three American citizens—Ryan David Lepene, E. Howard Mandel, and John Joseph Ranieri—all of whom held positions as partners or directors within TPG Peppertree—along with two Guatemalans, Jorge Leonel Gaitán Paredes and Jorge Alberto Gaitán Castro, who served as executives at Continental Towers, a company that was allegedly affected by fraud attributed to the five defendants.

According to the court ruling, the five are charged with aggravated fraud, unlawful association, and aggravated extortion. Peppertree was a minority shareholder in Continental Towers, where Terra Towers S.A. was the majority shareholder.

According to the Salvadoran Attorney General’s Office, the US members of TPG Peppertree are accused of having taken actions aimed at interfering with the internal operations of Continental Towers and limiting possible transactions with international buyers, which, according to the indictment, would have contributed to a decrease in the value of the company. It is alleged that these actions were intended to favor the sale of shares under conditions considered unfavorable to the majority shareholders and to allow greater control over the company.

 The Salvadoran authorities have also requested the arrest of the US citizens involved for the crime of aggravated extortion against a Salvadoran lawyer, the legal representative of several of the affected companies, and Guatemalan businessman Jorge Hernández Ortiz, majority partner of Terra Towers. Both reported having been subjected to alleged pressure and threats to favor decisions that benefited Peppertree.

Regional Research

The case is not limited to El Salvador. In Guatemala, Jorge Gaitán Paredes and Jorge Gaitán Castro are facing pretrial detention for a separate case of fraudulent administration and have been requested for extradition by the Salvadoran authorities. Other names linked to the investigation, such as Carol Echeverría, Juan Ignacio Berger, and María Isabel Umaña, face charges in Guatemalan courts for aggravated theft, conspiracy, and intellectual property infringement. According to investigations in both countries, these actions were allegedly directed by Ryan David Lepene, E. Howard Mandel, and John Joseph Ranieri from within the corporate structure.

In Honduras, investigations have also been launched in relation to the same international business case. In the United States, court documents refer to an arbitration award in New York and proceedings under the jurisdiction of a federal judge, which could lead to the application of legal frameworks such as the Foreign Corrupt Practices Act (FCPA), the Securities Exchange Act, and the RICO Act.

Risks for TPG

According to financial reports and market sources, TPG’s acquisition of Peppertree was presented as part of its expansion strategy in the digital infrastructure sector. The transaction includes ongoing litigation and international proceedings related to the acquired company, which places the firm under supervision in various jurisdictions.

According to corporate law specialists, if the accusations presented by the Salvadoran Public Prosecutor’s Office are confirmed, the company could be subject to verification procedures by agencies such as the SEC or the Department of Justice (DOJ), in addition to possible legal action by shareholders who consider the company’s valuation to have been affected. Experts point out that the current regulatory environment is characterized by greater demands for transparency and regulatory compliance, which has increased oversight of cross-border transactions of this nature.

In the financial sphere, market analysts point out that the outcome of the case will be decisive in determining how Peppertree’s integration into TPG’s global structure progresses and to what extent the ongoing lawsuits could influence the future development of the operation.

An Aquisition Under Observation

The transaction, initially announced as part of TPG’s expansion strategy in the digital infrastructure sector, is currently under review in the financial and regulatory spheres. Attention is focused on the integration of Peppertree into TPG’s corporate structure and the progress of ongoing legal proceedings.

At present, the case remains under review in various jurisdictions and is part of the standard review procedures that accompany large international transactions.