Kerri Pegg denies corruption allegations over relationship with convicted drug dealer
A former prison governor tearfully insisted she had done nothing wrong as she defended herself in court against allegations of corruption and misconduct in public office.
Kerri Pegg, 42, is accused of forming an inappropriate relationship with convicted drug dealer Anthony Saunderson—known among criminal associates as “Jesse Pinkman” after the Breaking Bad character—while working at HMP Kirkham in Lancashire.
Speaking in her own defence at Preston Crown Court, Pegg admitted she had been “incredibly stupid” but denied any wrongdoing.
“I didn’t think I was doing anything wrong,” she told the jury, wiping away tears. “But when I look back now, I was incredibly stupid.”
Luxury gifts and alleged abuse of power
Prosecutors allege that Pegg unlawfully approved Saunderson’s temporary release from HMP Kirkham while he was serving a 10-year sentence for drug conspiracy and money laundering. It is further claimed that she later received a £12,000 Mercedes C-Class saloon from him—allegedly purchased with drug money.
When police raided Pegg’s home in Orrell, Wigan, in November 2019, they found designer clothing, handbags, and jewellery, along with size 10 Hugo Boss flip flops and a toothbrush carrying Saunderson’s DNA.
Pegg, once regarded as a “rising star” in the Prison Service, had rapidly ascended from a graduate entrant to a prison governor within six years. However, the court heard that she faced “professional jealousy” at HMP Kirkham, where she took up her role in 2018.
Prisoner-turned-drug kingpin
Saunderson was moved to HMP Kirkham, an open prison, in June 2017. While there, inmates were allowed temporary release to prepare for reintegration into society. Pegg allegedly signed off on Saunderson’s release without the proper authority—something she denies.
Following his release in May 2019, Saunderson quickly returned to drug trafficking, leading a criminal network while using the alias “Jesse Pinkman.” Just two months later, in July 2019, Pegg saved his contact details in her phone.
Pegg claimed this was because Saunderson had been contracted by the Prison Service to deliver a rehabilitation project called BADD—Breaking Alcohol and Drug Dependency. She insisted that her interactions with him were strictly professional.
Secret communication and burner phones
However, in October 2020, Pegg received an unexpected phone call from Saunderson while at work.
“He was feeling quite low and wanted a friendly ear, someone to talk to,” she explained. “I worked with him as a colleague. I didn’t see a problem with that. I thought he would be returning to the BADD programme after lockdown.”
Saunderson allegedly asked for an alternative contact number, citing concerns that his wife was “very jealous” and did not want him communicating with other women. Pegg said she did not think much of it at the time and purchased a cheap Nokia phone with a separate SIM card for him.
“I just thought I was doing the right thing,” she said. “The phone was for him to use as a support mechanism.”
Courtroom interrogation
During cross-examination, Andrew Alty, defending, pressed Pegg on whether she had reported her secret communication with Saunderson.
“He was an ex-prisoner. You acquired a burner phone to allow him to communicate with you outside the prison. Did you report this?” he asked.
“No,” Pegg admitted. “I still viewed him as a colleague. I thought he would be coming back to work. I didn’t think I was doing anything wrong. But when I look back now, I was incredibly stupid. I ask myself, ‘Why did I do that?’”
Pegg also refuted claims that Saunderson had ever stayed at her home. She could not explain how his DNA was found on the flip flops in her flat but suggested his DNA may have transferred onto the toothbrush through casual contact at the prison.
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“At the time, I wore braces and was undergoing dental treatment, so I had to brush my teeth regularly after meals,” she said. “I always carried toothbrushes with me, so maybe there was some kind of transfer.”
Encrypted phones and drug trafficking
Following his release, Saunderson used an EncroChat encrypted mobile phone—a system favoured by organised criminals to evade law enforcement.
When EncroChat was cracked by authorities, messages revealed Saunderson’s involvement in large-scale drug trafficking. It is also alleged that messages on his device detailed an “ongoing relationship” with Pegg.
Pegg denies two counts of misconduct in public office—one for allegedly engaging in a relationship with Saunderson and another for failing to disclose county court judgements about her debts, which prosecutors argue left her vulnerable to exploitation.
She also denies one count of possessing criminal property, namely the Mercedes allegedly given to her by Saunderson.
The trial has been adjourned until Thursday morning.
