A former prison governor once hailed as a “rising star” has been jailed for nine years after her secret relationship with a notorious Merseyside drug kingpin was exposed.
Kerri Pegg, 42, appeared at Preston Crown Court on Friday, where she was sentenced following a dramatic fall from grace that saw her abandon a promising career in the Prison Service for a life entangled with one of Liverpool’s most dangerous criminals, Anthony Saunderson.
Saunderson, dubbed “Jesse Pinkman” by underworld associates due to his likeness to the Breaking Bad character, is currently serving 35 years for orchestrating industrial-scale drug operations. The court heard how Pegg, who once drove a modest Honda Jazz, began living a high-flying lifestyle funded by Saunderson’s criminal empire – including swapping her car for a £12,000 Mercedes paid for with 34 kilos of amphetamines.
Described in court as “petite, blonde and bubbly”, Pegg approved a temporary release request for Saunderson while serving as governor at HMP Kirkham, Lancashire – despite lacking the authority to do so. Suspicion was soon raised over her conduct, with colleagues noting the frequent closed-door meetings between Pegg and Saunderson.
When her flat in Orrell, Wigan, was raided in November 2020, officers from the North West Regional Organised Crime Unit discovered luxury items far beyond her £3,000-a-month salary – including designer jewellery, Chanel handbags and Hugo Boss slip-ons. Saunderson’s DNA was also found on a toothbrush and a pair of flip-flops, further confirming the intimacy of their relationship.
The pair’s association came under further scrutiny after the cracking of EncroChat – the encrypted messaging system favoured by criminal gangs – revealed damning evidence of their continued contact and Pegg’s involvement.
In court, Pegg was found guilty of two counts of misconduct in a public office and one count of possessing criminal property. During her trial, she claimed her interactions with Saunderson were due to his involvement in the BADD programme – Beating Alcohol and Drug Dependency – which he had helped deliver across several prisons. However, prosecutors said this was a front, as Saunderson was simultaneously running a major drug operation from a lab on the England–Wales border and a storage unit in Aintree.
Barbara-Louise Webster, prosecuting, said Pegg had “thrown away a promising future,” while Andrew Alty, defending, argued that Pegg had been “naive” and manipulated by a seasoned criminal.
Born in Bramhall, Stockport, Pegg had previously worked in the Probation Service for eight years before joining the Prison Service in 2012 as a graduate entrant. Within six years, she rose to the rank of governor, with stints at HMP Risley, Liverpool and Styal before her final posting at Kirkham. Her rapid ascent was matched by a lifestyle change, including breast enhancement surgery and frequent luxury purchases.
Detectives found she was heavily in debt, with four maxed-out credit cards, three undeclared County Court Judgements and just 6p in her savings account. Her financial vulnerabilities, combined with her role, made her a prime target for corruption.
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Following her arrest, Pegg resigned from the Prison Service and began working as operations manager at The Brick, a Wigan-based charity supporting those in poverty. Although the charity was aware of the investigation, she continued in the role under significant restrictions.
Phil Copple, chief executive of HM Prison and Probation Service, said: “This criminal misconduct lets down the public and our hardworking prison staff. But it also shows our commitment to rooting out corruption at every level.”
Detective Inspector Brian Morley, from NWROCU, added: “Pegg held a senior position in the Prison Service, entrusted with maintaining integrity and order. Her actions were a grave betrayal of that trust.”
The case has sent shockwaves through the prison system, highlighting vulnerabilities within the service and raising questions about oversight and safeguarding against internal corruption.
