Moment prison governor is arrested by police as she's jailed for relationship with drug boss who she released early

Daily Mail​

17-05-2025

This is the moment a 'rising star' prison governor was arrested by police for having a relationship with a drug boss, who she released early despite not having the authority to do so herself.
Kerri Pegg from Up Holland in Lancashire, was previously described as a 'rising star' of the Prison Service, climbing her way from the graduate scheme to a governor at HMP Kirkham in Lancashire, in only six years
But now, the 42-year-old has been jailed after being convicted of misconduct in public office and possession of criminal property at Preston Crown Court on April 9, as it emerged she had a relationship with Liverpool crime figure Anthony Saunderson.
Bodycam footage of the divorcee's arrest, shows officers approach her home in Ogwell, Wigan. She later recoils in shock upon hearing news of a complaint, with officers later arrestidng her for the crimes.
'Petite, blonde and bubbly' Pegg was a governor-grade prison officer at the Lancashire prison in 2018 when Saunderson was reaching the end of a lengthy 10-year sentence for large scale drug dealing.
During the trail, it was heard how the divorcee prison guard 'didn't play by the rules', beginning a romance with the crime boss, and later helping him secure early release from prison in mid-2019.
The court heard how a toothbrush and size 10 Hugo boss flip flops containing Saunderson's DNA were found at the 42-year-old's home in Orwell, Wigan, during a police raid.
Jurors were also told she had been gifted a £12,000 Mercedes C class car by the criminal, which was paid for by 34 kilos of amphetamines.
Following Saunderson's release, the organised crime boss was using an encrypted communication system called Encrochat to speak to his criminal associates, where he used the name Jesse Pinkman - a meth dealer in US crime drama Breaking Bad.
Jurors heard how Saunderson would also go by the name James Gandolfini, an actor who played Tony Soprano in a hit mafia TV series, in his correspondence with other criminals.
Law enforcement agencies gained access to Encrochat and were able to see the messages which included references to 'Kerri' and to obtaining a Mercedes for his girlfriend.
On 6 April 2020 Saunderson was sent a message saying 'car her (sic) for ya bird 12 quid or work'. '12 quid' in this criminal context means £12,000 and 'work' means drugs. Saunderson was then sent a picture of a black Mercedes coupe.
On 11 April Saunderson was joking with associates on Encrochat about driving around with 'Peggy' in her new car.
In late 2020, Pegg was arrested and the Mercedes was parked outside her house. She had a 'burner' mobile telephone used just to communicate with Saunderson and his DNA was found on footwear and a toothbrush at her home.
Saunderson was previously one of Merseyside's most wanted men after importing £19 million of cocaine and corned beef from Argentina.
A probe found disgraced prison guard, Pegg, was living 'beyond her means', purchasing lavish jewellery and clothing, such as Jimmy Choo shoes and Chanel necklaces. She also had breast enhancement operation while serving at HMP Liverpool.
Investigations showed the divorcee was in serious debt, even though she was paid £3,000 a month, and had a three separate of County Court Judgements (CCJ) against her for money owed to a parking company and credit card companies.
This resulted in a separate charge of misconduct, due to officials being vulnerable to corruption if they are embroiled in debt. The court was also told all four of Pegg's credit cards were at their limit, with only 6p left in her savings account.
Prosecutor Barbara-Louise Webster said Pegg had a taste for expensive clothes and 'lived beyond her means' which made her 'vulnerable and open to exploitation.'
Ms Webster had told the jury: 'She became emotionally and personally involved with Saunderson and accepted the expensive car which was paid by him with the proceeds of criminal activity - trading in drugs.'
Mr Andrew Alty, defending, had told the jury that Pegg had been 'naive, gullible and possibly stupid' but not corrupt.
It was also heard how the ex-prison governor would spend a considerable amount of time in her office with the prisoner, with Saunderson later applying to be freed on a temporary licence in October 2018.
Even members of Saunderson's gang complained he spent too much time with Pegg. The prison governor claimed this was due to his participation in a programme called BADD - Beating Alcohol and Drug Dependency - for prisoners in multiple jails.
Pegg had never disclosed any relationship with Saunderson, nor the county court judgements, to her employer. The rules of her employment required her to disclose both. She has since been dismissed from her role.
Since his release, Saunderson was convicted of drugs and firearms offences and is back in prison serving a 35-year sentence.
The prison governor formerly worked in the Probation Service, but made the move to prison work after she split from her husband of four years while his construction firm failed.
Judge Graham Knowles KC sentencing told Peggh: 'You betrayed the public trust in you and you betrayed the Prison Service.'
'It was shocking and unconscionable that you should have had that relationship.
'You knew how you should and should not act. You had training and support. You were warned and you were challenged. The boundaries were clear and explicit and you knew you were crossing them.'
Tarryn McCaffrey from the Crown Prosecution Service said: 'Pegg's actions in becoming involved with a prisoner who had committed serious drug offences portrayed a total lack of integrity or judgement.
'She displayed a shocking lack of professionalism in her role, overriding rules around Saunderson's temporary release and ignoring her obligations to declare personal debts.
'The evidence presented at court by the CPS, including messages and DNA evidence, proved beyond doubt the close relationship between the two.
'The seriousness of today's sentence reflects how damaging these actions were to the confidence of the public, who are entitled to be able to trust those who work in prisons.
'The CPS will not hesitate to work with partners such as the North West Regional Organised Crime Unit to prosecute those who commit misconduct in public office.'
He said that Pegg's virtues were that she is 'compassionate, selfless, dedicated, genuine, hard working and supportive'. He said she had the support of her family and her mother was in court to see her daughter sentenced.
Mr Alty said:' These are not just adjectives. They are positive virtues.'