A prison governor has denied being in a relationship with a convicted drug gang leader, despite investigators discovering Hugo Boss flip-flops and a toothbrush carrying his DNA in her flat.
Kerri Pegg, 42, also refuted claims that she accepted a £12,000 Mercedes from Anthony Saunderson, a prisoner she had authorized for temporary early release from HMP Kirkham, where she served as a governor, a jury at Preston Crown Court heard.
Once regarded as a "rising star" in the Prison Service, Pegg had rapidly advanced from a graduate entrant to prison governor in just six years. However, the court was told she failed to follow the rules.
Prosecutors allege Pegg became involved with Saunderson, who was known among criminal associates as "Jesse Pinkman," a reference to the meth-dealing character from Breaking Bad.
During the trial, prosecutor Barbara Louise-Webster presented the jury with the flip-flops found in Pegg’s home, asserting that Saunderson had been a frequent visitor.
"A number of times, because you were in a relationship?" Ms. Webster asked.
"No," Pegg replied.
Ms. Webster then questioned her about the toothbrush containing Saunderson’s DNA and the flip-flops carrying both of their DNA.
Pegg admitted the items belonged to Saunderson but denied any romantic involvement.
When asked about her shoe size, Pegg, described in court as "petite, blonde, and bubbly," stated she was a size four, implying the flip-flops were too large for her.
Prosecutors claim Pegg not only developed a personal relationship with a prisoner and accepted an expensive car from him but also lived beyond her financial means, accumulating debt.
They further allege she failed to disclose three County Court Judgments against her, despite a legal obligation to do so, as financial difficulties can make public officials more susceptible to corruption.
Pegg, tearfully addressing the court, admitted to being "incredibly stupid" but insisted she had done nothing illegal.
When police raided her home in Orrell, Wigan, in November 2019, they seized the Mercedes C-Class parked outside and found designer clothing, shoes, handbags, and jewelry inside her apartment.
Saunderson had been sentenced to 10 years in prison in November 2014 for drug conspiracy and money laundering. In June 2017, he was transferred to HMP Kirkham, where Pegg later authorized his temporary release without proper approval, according to prosecutors.
After completing his sentence, Saunderson was released from Kirkham on May 22, 2019. However, within two months, he became involved in another drug supply conspiracy.
Using the encrypted Encrochat network, which was widely used by organized crime groups, Saunderson was identified as the leader of a drug gang, operating under the alias "Jesse Pinkman."
At the same time, in July 2019, Saunderson was contracted by several prisons to work on a program called Breaking Alcohol and Drug Dependency (BADD).
Pegg, who oversaw drug strategy across six prisons in the North West and was deeply invested in the BADD project, claimed she viewed Saunderson not as a former inmate but as a "colleague," which explained her interactions with him.
However, when police later cracked the Encrochat system, it allegedly exposed Saunderson’s continued drug activities and his suspected relationship with Pegg.
Pegg faces two charges of misconduct in public office—one for allegedly having a relationship with Saunderson and the other for failing to disclose her financial troubles.
She also faces a charge of possessing criminal property, specifically the Mercedes she is accused of receiving from Saunderson. She denies all allegations.
1
2
3
4
.svg)
