Mount Herron Engineering

Mount Herron Engineering was originally established by a core of commited group members and the Pesch family with the aim of developing a business machine within the 'Team' which could finance the kingdom building aspirations of the group. The vision was to build a business in which many of the groups members (many of whom were tradesmen of engineers) would have a chance to contribute or patricipate, investing their skills and time into something which would ultimately benefit the entire group.

Starting with nobel aspirations the working arrangement soon evolved into a highly controlled and abusive environment with group members pressurised into working long hours and working for free on Saturdays as part of their contribution of a 'tenth of their time' to the kingdom.

The companies abilities were vigourously promoted as groundbreaking and spearheading a thrust into emerging markets with promising returns, all supported by unvarified claims and unsubstantiated papers from a multitude of internet sites

Group members were coerced to take out loans on credit cards, personal loans, borrow on the property they owned or borrow money from relatives not inside the group, to fund the developmental stages of the companies growth.

Most of the private investment came from group members in Europe and was documented poorly both on coming into Australia and entering the cash flow of Mount Herron Engineering, thus making it hard for individual group members to extract their investment, or in some cases even be able to earn a dividend on their investment

Klaus Pesch started to use Mount Herron Engineering as a business 'front end' for his activities in Europe and America laundering money through the company as 'consultancy fees' and thus evading tax in Australia. Funds were extracted from Mount Herron Engineerings cash flow and diverted into properties owned by Pesch family members in both Oheningen - Germany and Colorado – USA.

Mt Herron Engineering fraudulently missrepresented the value of its intellectual property, technical ability and business acumen to lending institutions inorder to secure loans which were then ploughed into projects owned by the Pesch family.

The company has floundered as a result of poor engineering practice and lack of qualified input into key disciplines with ineffectual peer review, resulting in fundemental floors in project performance.

Poor internal business practice from inexperienced staff coupled with deficient project outcomes have placed enormous pressure on the company, its investors and the Pesch family.

Given the lack of essential features required to run a successful company such as a motivated and commited staff, proper management structure and a robust governance framework it is unlikely that Mount Herron Engineering will survive in the long term as a sound bussiness entity and many people who have invested their time and effort will ultimately see their sacrifices to a nobel idea dissapear under a mountain of debt and recrimination.