Prison Governor Convicted Over Affair With Notorious Drug Kingpin Inmate

Kerri Pegg, former governor of HMP Kirkham, had an affair with an inmate

A senior female prison governor is facing a custodial sentence after being found guilty of misconduct in public office and possessing criminal property due to her relationship with one of the country’s most wanted drug lords. Kerri Pegg, 42, formerly a governor at HMP Kirkham, developed a relationship with Anthony Saunderson, a major organised crime boss who is currently serving a 35-year sentence for drug trafficking.

Pegg, a former probation officer who joined the Prison Service in 2012, was convicted of two counts of misconduct in public office and one count of possession of criminal property following a three-week trial. The jury returned guilty verdicts after deliberating for two hours and 43 minutes. The judge indicated that a prison sentence was inevitable and bailed Pegg while a sentencing date was arranged.

During her time at HMP Kirkham, Pegg approved a release on temporary licence for Saunderson, despite lacking the authority to do so. At the time, Saunderson was nearing the end of a 10-year sentence for drug offences, having been previously identified as one of Merseyside’s most wanted fugitives in connection with a £19 million cocaine smuggling operation involving shipments disguised as corned beef from Argentina.

Known among criminal associates as “Jesse Pinkman” and “James Gandolfini,” Saunderson had been delivering a programme called BADD (Beating Alcohol and Drug Dependency) to inmates while simultaneously overseeing an amphetamine production operation. Pegg claimed her association with him was related to his involvement in the BADD initiative, though members of his gang complained that Saunderson spent excessive time with her, even at the expense of his marriage and criminal enterprises.

The £12,000 Mercedes C-Class, gifted to her by Saunderson and reportedly paid for with 34 kilograms of amphetamines

Pegg, described as "petite, blonde and bubbly," was once viewed as a rising star in the Prison Service. She swiftly rose from graduate entrant to governor within six years and had undergone breast enhancement surgery during her tenure. She clashed with superiors over her open-door and "progressive" approach to prisoner engagement, which some saw as unorthodox.

Concerns were raised early in her posting at HMP Kirkham regarding her close relationship with Saunderson, with reports of the two frequently meeting in her office behind closed doors. In May 2019, Saunderson was released from prison and within two months had resumed high-level criminal activities. At the time, Pegg was overseeing drug strategy coordination across six prisons in the North West and reportedly maintained contact with Saunderson.

In November 2020, police raided Pegg’s apartment in Orrell, Wigan, and found a £12,000 Mercedes C-Class, gifted to her by Saunderson and reportedly paid for with 34 kilograms of amphetamines. They also discovered designer items such as Jimmy Choo shoes and Chanel jewellery, suggesting a lifestyle far exceeding her £3,000 monthly income. Investigators uncovered evidence of serious financial trouble, including four maxed-out credit cards, just six pence in savings, and three undeclared County Court judgments—factors that rendered her vulnerable to corruption.

Kerri Pegg is facing prison

DNA evidence from Saunderson was found on a toothbrush and a pair of Hugo Boss flip-flops in her flat. The court heard that Pegg had replaced her modest Honda Jazz with the luxury Mercedes as part of the relationship.

In court, Pegg insisted she had not done anything wrong, admitting only to being "incredibly stupid." Her defence described her as "green and stupid," suggesting she was manipulated by the experienced criminal. The prosecution, however, argued that her actions represented a gross breach of public trust, noting that the relationship likely began while Saunderson was still incarcerated.

Prosecutors stated that Pegg had a promising future in public service, but her involvement with Saunderson led to her downfall. Her misconduct, combined with failure to disclose serious debts, was described as extremely damaging to public confidence in the justice system.