Kerri Pegg: 'Rising star' prison governor jailed over secret relationship with Liverpool drug gang boss

A former prison governor once seen as a “rising star” in the Prison Service has been jailed for nine years after having a secret relationship with a major Liverpool drug gang boss.

Kerri Pegg, 42, was convicted of two counts of misconduct in a public office and one count of possession of criminal property following a three-week trial at Preston Crown Court. Her sentence was confirmed by the North West Regional Organised Crime Unit (NWROCU).

Pegg, who served as a governor at HMP Kirkham in Lancashire, developed a relationship with Anthony Saunderson, a notorious crime boss who was later jailed for 35 years for his role in large-scale drug trafficking.

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According to prosecutors, Pegg approved a temporary release request for Saunderson despite lacking the authority to do so. When police later raided her home in Wigan, they found designer jewellery, luxury clothing, and a Mercedes C-Class paid for by 34kg of amphetamines provided by Saunderson.

Deputy Chief Constable Brian Morley, from NWROCU’s Prison Intelligence Unit, said: “Kerri Pegg was a senior figure within the Prison Service, a public servant expected to behave to the highest standards but this was serious misconduct on her part and greatly undermines the trust given to prison staff and order in a prison.”

Kerri PeggKerri Pegg
Kerri Pegg

Tarryn McCaffrey, of the Crown Prosecution Service, added: “Pegg’s actions in becoming involved with a prisoner who had committed serious drug offences portrayed a total lack of integrity or judgment.”

At trial, the court heard Pegg, described as “petite, blonde and bubbly”, frequently met with Saunderson behind closed doors while he was still serving a sentence. The relationship continued after his release, and investigators found a toothbrush and Hugo Boss flip-flops carrying his DNA in her apartment.

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Saunderson, known by aliases such as “Jesse Pinkman” and “James Gandolfini” within criminal circles, had been involved in importing £19 million worth of cocaine and later ran a major amphetamine factory.

Although Pegg claimed her contact with him was due to his involvement in a prison rehabilitation initiative called BADD (Beating Alcohol and Drug Dependency), prosecutors said she helped him secure illicit freedom and gained financially from their association.

Barbara-Louise Webster, prosecuting, told the jury: “Anthony Saunderson was her downfall.”

Kerri PeggKerri Pegg
Kerri Pegg

Pegg, originally from Bramhall, Stockport, joined the Prison Service in 2012 after eight years in probation work. She rose rapidly, becoming a governor in six years and later coordinating drug strategy across six North West prisons.

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Despite her £3,000 monthly salary, investigators found Pegg was in financial trouble, with four maxed-out credit cards, only 6p in savings, and multiple undeclared County Court Judgements, a key vulnerability for corruption risk.

Phil Copple, chief executive of HM Prison and Probation Service, said: “The criminal misconduct in this case lets down the public we serve as well as the vast majority of honest and hardworking prison staff, but it also demonstrates our determination to take robust action against those who fail to achieve proper professional standards.”

After resigning, Pegg became an operations manager at The Brick, a poverty and homelessness charity in Wigan. The charity was aware she was under investigation and imposed “substantial restrictions” on her role.

Her defence lawyer, Andrew Alty, described her as “green and stupid” and claimed she was manipulated by Saunderson. Pegg herself told the court: “I’ve been incredibly stupid… but I didn’t think I’d done anything wrong.”

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