Former Lancashire prison governor found guilty of relationship with inmate and accepting Mercedes as gift

Kerri Pegg, 42, from Up Holland, was convicted of misconduct in public office and possession of criminal property following a trial at Preston Crown Court.

Pegg was a governor-grade prison officer at HMP Kirkham in Lancashire in 2018, when Anthony Saunderson - who was serving a lengthy sentence for large-scale drug dealing - was nearing the end of his time in prison.

Other officers noticed a close relationship between Pegg and Saunderson, which later extended to Pegg intervening to approve his temporary release on licence.

In mid-2019, Saunderson was released from prison and, early the following year, began using an encrypted communication system called Encrochat to contact his criminal associates.

Law enforcement agencies gained access to Encrochat and discovered messages referencing ‘Kerry’ and a plan to obtain 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.” In this context, ‘12 quid’ referred to £12,000 and ‘work’ meant drugs.

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Saunderson was then sent a picture of a black Mercedes coupe.

On 11 April, Saunderson joked with associates on Encrochat about driving around with ‘Peggy’ in her new car.

In late 2020, Pegg was arrested, and the Mercedes was found parked outside her home.

She was also found to have a ‘burner’ mobile phone used exclusively to communicate with Saunderson. His DNA was found on footwear and a toothbrush at her home.

Investigations following her arrest revealed that Pegg was in significant debt and had several county court judgments against her.

Pegg had never disclosed her relationship with Saunderson or her financial troubles to her employer, despite rules requiring such disclosures.

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As a result, she was dismissed from her position.

Since his release, Saunderson has been convicted of drug and firearms offences and is now serving a 35-year sentence in prison.

During her trial at Preston Crown Court, it emerged Saunderson had developed and delivered a programme, titled BADD (Beating Alcohol and Drug Dependency) for inmates at several jails – while at the time being a major drug dealer, running an amphetamines factory.

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Pegg claimed her contact with Saunderson was due to his involvement in the BADD programme.

But even members of his gang grumbled that their boss was spending too much time with Pegg and away from his wife and “work”.

Pegg was convicted of two counts of misconduct in a public office and one count of possession of criminal property.

The jury was out for two hours and 43 minutes, following a three-week trial.

Pegg made no reaction as the guilty verdicts were delivered.

Judge Graham Knowles told Pegg a prison term was “inevitable”, but bailed the defendant to the court building while a sentencing date is arranged either later on Tuesday or at a later date.

Tarryn McCaffrey from the Crown Prosecution Service (CPS) said: “Kerri Pegg’s conduct fell far short of what might be expected from any professional within the prison service, let alone one of such a senior grade as prison governor.

“She was clearly involved in an inappropriate relationship with Saunderson after he was released, and the evidence points to this going back further, to a time when he was in jail.

“This relationship, and the fact that Pegg failed to disclose her debts to her employers, amount to a gross breach of trust and are therefore extremely damaging to public confidence.

“The CPS will not hesitate to prosecute cases such as this where public servants abuse their position.”