A prison governor began a relationship with a drug dealer who gave her a £12,000 Mercedes Benz car paid for with drugs money after she released him on licence from jail, a court heard.
Kerri Pegg, 42, was seen as a “rising star” in the Prison Service, quickly climbing the career ladder from graduate entrant to prison governor in six years, Preston Crown Court heard.
But Pegg “didn’t play by the rules” and, while governor at HMP Kirkham, began a relationship with an inmate, Anthony Saunderson, who gave her the coupe car bought with proceedings from drugs, it is alleged.
When police raided her home in Orrell, Wigan, they found a toothbrush with his DNA on it, jurors heard.
Barbara-Louise Webster, opening the case for the prosecution, told the jury of seven women and five men: “Despite her success, she didn’t play by the rules that everybody else had to follow.
“Her downfall was two-fold. The first, despite having a good income, she lived beyond her means.
“She spent all her income and more, incurring debts, and she had county court judgements made against her.
“As a consequence, she became vulnerable and open to exploitation.
“The second was that she became emotionally and personally involved with a serving prisoner, Anthony Saunderson and later accepted an expensive car, a Mercedes C class, which was paid for by him out of his proceeds of criminal activity ie trading in drugs.”
Pegg denies two counts of misconduct in a public office, one by having a relationship with Saunderson and the second by failing to disclose county court judgements about her debts.
She also denies one count of possessing criminal property, the Mercedes car, from Saunderson.
Pegg joined the prison service in 2012 as a graduate entrant, working at prisons including Risley, Liverpool and Styal.
By April 2018 ,she was a governor at HMP Kirkham, where Saunderson was reaching the end of a lengthy sentence for drugs offences.
But from the start of her time at the jail, there were concerns about Pegg being inappropriately close to prisoners, jurors heard.
It was noted she spent a lot of time in her office with Saunderson, and in October 2018, he put in a request to be released on temporary licence.
Though such requests are routine, there are clear and very specific rules for how they should be dealt with – rules which Pegg broke, Ms Webster said.
She did not have the authority to approve the release, but intervened and approved the application without notifying the official who should have dealt with it, it is alleged.
Days later, she was moved to another jail, later becoming duty governor at HMP Lancaster Farms.
Saunderson was released from prison in May 2019 and in early 2020, was using an Encrochat encrypted mobile phone, used by serious, organised criminals to send messages and secretly communicate.
When the system was cracked by law enforcement agencies, it showed Saunderson was involved in massive drug trafficking. He has since been convicted for those offences.
But other messages also showed the “ongoing nature” of his relationship with Pegg, the court heard.
On April 6, 2020, Saunderson was sent a message on Encrochat saying “car here for ya bird 12 quid or work” and a photo of the black Mercedes coupe.
The “12 quid” meant £12,000, and “work” meant drugs.
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Saunderson asked “what work they want” and he was told “top or weed” – that is, cocaine or cannabis.
Two days later, Saunderson arranged for “17 packs” to be dropped off in Manchester to pay for the car, it is alleged.
The Mercedes was then registered to Pegg at her home on April 11, 2020, and a message to Saunderson from a friend read: “Where u ya seedy man u and Peggy out floating orrel in the new whip?”
Pegg was arrested at her home on November 19, 2020, with police finding expensive items of designer clothes.
They also found a toothbrush and a pair of flip flops at her flat.
Both items were found to have mixed DNA samples on them, matching the DNA of Pegg and Saunderson.
Paperwork seized showed Pegg was the subject of a number of county court judgements for unpaid debts.
The trial continues.
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