Lancashire prison governor denies affair with drug dealer and misconduct over alleged release signing

Kerri Pegg, 42, described in court as “petite, blonde, and bubbly,” was allegedly gifted a £12,000 Mercedes car by Anthony Saunderson, who used the name Jesse Pinkman, a meth dealer from the hit TV show Breaking Bad, during secret communications with other criminals.

Pegg had been a “rising star” in the Prison Service, climbing the career ladder from graduate entrant to prison governor in six years, Preston Crown Court was told.

But while serving as a governor at HMP Kirkham, she allegedly became too close to Saunderson, signing off his temporary release without proper authority, it is alleged.

After Saunderson had served his sentence, detectives found size 10 Hugo Boss flip-flops and a toothbrush, both with his DNA on them, at Pegg’s home in Orrell, Wigan.

Pegg is alleged to have been gifted the black Mercedes coupe after Saunderson paid for the vehicle using 34 kilos of amphetamines, jurors heard.

The defendant denies two counts of misconduct in a public office: one for having a relationship with Saunderson, and the second for failing to disclose county court judgments about personal debts.

She also denies one count of possessing criminal property, the Mercedes car, from Saunderson.

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Giving evidence from the witness box in her own defence, Pegg said she joined the Prison Service after working for the Probation Service for eight years because she liked working with people and wanted to “make a difference.”

She told jurors she currently works for a poverty and homeless charity in Wigan called The Brick, which she had informed about her court case, and some people from the charity were attending court.

While working at HMP Liverpool in March 2018, she told the jury she was called to a meeting with the main governor, Robert Durgan, after the Prison Service found out she had three County Court Judgments (CCJs) against her. This is against the rules for staff, as it may make them vulnerable to financial inducements.

Pegg said she did not realize that not declaring or having a CCJ was breaking the rules.

She said: “I was mortified, I was embarrassed, I started crying. But he was really supportive and kind.”

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Andrew Alty, defending, asked if Mr. Durgan told her she should have reported her CCJs and whether this amounted to misconduct in a public office.

Pegg replied: “No. He said they were now ‘known.’ Declared. And there was no further disciplinary action to take. He just gave me advice.”

The defendant said staff at HMP Liverpool were also aware that she had had a breast enhancement procedure and was put on restricted duties for a time to recover.

Pegg said when she moved to HMP Kirkham in April 2018 as a governor, where Saunderson was coming to the end of a 10-year sentence for drug offenses, there were “cultural issues.”

Pegg said her “style” was always to have an “open-door policy” and lots of contact with prisoners in the jail.

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“I have always been a hands-on person, a hands-on manager. I like contact with people,” she said.

“They really seemed to appreciate it. They really appreciated someone willing to listen to them. They felt they had been ignored by other staff.”

Pegg admitted that she had signed off on a Release on Temporary Licence (ROTL) form for Saunderson in October 2018, which should only have been signed off by another official, the acting duty governor.

But Pegg said she had done this before if paperwork was late, and it was not unusual.

Mr. Alty continued: “Did you sign that ROTL because of some form of special relationship with Anthony Saunderson?”

“No,” replied Pegg.

Earlier, the trial heard that Saunderson was released from prison in May 2019, and in early 2020, he was using an EncroChat encrypted mobile phone, used by serious, organized criminals to send messages and secretly communicate, the court heard.

When the system was cracked by law enforcement agencies, it showed that Saunderson went by the handle or pseudonym of Jesse Pinkman and was involved in massive drug trafficking. He has since been convicted for those offenses.

Other messages on the phone also revealed the “ongoing nature” of his relationship with Pegg, it is alleged.

Pegg was arrested at her home on February 11, 2021, and later charged.

The trial was adjourned until Wednesday morning.