A former prison governor, once hailed as a rising star in the Prison Service, has been jailed for nine years after her covert relationship with a notorious drug gang boss was exposed.
Kerri Pegg, 42, who rapidly rose through the ranks to become governor at HMP Kirkham in Lancashire, was found guilty of misconduct in public office and possession of criminal property following a damning trial at Preston Crown Court.
The court heard how Pegg entered into an improper relationship with Liverpool crime boss Anthony Saunderson, helping him obtain day release and accepting gifts funded by drug proceeds, including a £12,000 Mercedes C-Class.
Her home was later found to contain items bearing Saunderson’s DNA, including a toothbrush and Hugo Boss flip flops.
Sentencing her, Judge Graham Knowles KC said: “You betrayed the public trust placed in you and the Prison Service. The boundaries were clear and you knowingly crossed them.”
He added that Pegg had become “catastrophically compromised”, given her substantial personal debts and undeclared County Court judgments, which made her vulnerable to corruption and blackmail.
Despite earning £3,000 a month, Pegg was heavily indebted, maxed out on four credit cards, and had just 6p in savings.
Investigators discovered she was living beyond her means, splashing out on designer goods such as Jimmy Choo shoes and Chanel jewellery.
Police began their investigation in 2020 after uncovering messages on the encrypted EncroChat platform, linking Pegg to Saunderson, who was then serving a 10-year sentence for drug trafficking.
Saunderson had previously been one of Merseyside’s most wanted men, tied to the importation of £19 million worth of cocaine disguised as corned beef.
While in prison, he also led a rehabilitation programme ironically titled BADD—Beating Alcohol and Drug Dependency—even as he ran an amphetamines factory from behind bars. Saunderson was released from Kirkham in 2019 and resumed criminal activity within weeks.
Pegg was described by her own defence as a “caring” person who had been manipulated by a sophisticated criminal.
But Crown prosecutors said her actions showed a “shocking lack of professionalism” and a disregard for public duty.
She was sentenced to nine years for the primary misconduct charge, alongside concurrent terms of two years and four years for other offences.
Phil Copple, chief executive of HM Prison and Probation Service, condemned Pegg’s conduct: “This misconduct lets down the public and the thousands of honest staff who serve with integrity every day. We are committed to rooting out anyone who fails to meet the standards expected.”
