A UK prison governor allegedly engaged in an inappropriate relationship with an inmate, fast-tracking his release before accepting a £12,000 Mercedes—paid for with drug money, a court has heard.
Kerri Pegg, 42, described as a “rising star” in the Prison Service, quickly advanced from a graduate entrant to prison governor within six years.
However, prosecutors claim she abused her position while working at HMP Kirkham in Lancashire by becoming romantically involved with drug dealer Anthony Saunderson.
Financial Struggles Led to Vulnerability, Court Told
At Preston Crown Court, prosecutor Barbara-Louise Webster told the jury that Pegg’s financial troubles left her susceptible to exploitation.
“Despite earning a good income, she lived beyond her means, accumulating debts and facing county court judgments,” Webster said. “This made her vulnerable and led to her downfall.”
She added that Pegg became personally involved with Saunderson and later accepted an expensive Mercedes C-Class, allegedly purchased using drug money.
Secret Relationship and Fast-Tracked Release
Pegg, who joined the prison service in 2012, worked at various institutions, including HMP Risley, Liverpool, and Styal, before becoming governor at HMP Kirkham in April 2018.
During her tenure, concerns arose about her close interactions with prisoners, particularly with Saunderson. It was reported that she frequently spent time alone with him in her office.
In October 2018, Saunderson applied for temporary release, a process governed by strict regulations. However, Pegg allegedly intervened without authorization, fast-tracking his application without notifying the appropriate officials.
Days later, she was transferred to another prison and eventually promoted to duty governor at HMP Lancaster Farms.
Drug Money Funded Mercedes, EncroChat Messages Reveal
Saunderson was released in May 2019 and, by early 2020, was using EncroChat—a highly encrypted messaging system used by organized criminals.
When law enforcement cracked EncroChat, messages revealed that Saunderson was deeply involved in large-scale drug trafficking. He has since been convicted for those offenses.
However, prosecutors argue that his relationship with Pegg continued, citing messages that allegedly discuss the purchase of a luxury car for her.
On April 6, 2020, Saunderson received a message stating: “Car here for ya bird, 12 quid or work,” accompanied by a photo of a black Mercedes coupe.
Prosecutors claim:
- “12 quid” meant £12,000, and
- “Work” referred to drugs—either cocaine or cannabis.
Two days later, 17 packs of drugs were delivered in Manchester as payment for the vehicle, it is alleged.
The Mercedes was registered to Pegg’s home on April 11, 2020, with an acquaintance later messaging Saunderson: “Where u ya seedy man? U and Peggy out floating orrel in the new whip?”
Arrest and Evidence
Police arrested Pegg at her home on November 19, 2020, seizing:
- Expensive designer clothes,
- A toothbrush and flip-flops containing mixed DNA from both Pegg and Saunderson, and
- Documents revealing her outstanding debts.
Charges and Denials
Pegg denies all charges, including:
- Misconduct in a public office (for engaging in a relationship with Saunderson),
- Failing to disclose her financial difficulties, and
- Possession of criminal property (the Mercedes).
The trial continues.
