Kerri Pegg, a 42-year-old former prison governor, has been found guilty of misconduct in a public office after engaging in an inappropriate relationship with Anthony Saunderson, a convicted drug gang leader.

Known among his criminal associates as 'Jesse Pinkman'—a reference to a character from the television series Breaking Bad—Saunderson is currently serving a 35-year sentence following a conviction for drug trafficking.

The relationship between Pegg and Saunderson came to public attention during a trial at Preston Crown Court.

Pegg received a luxury £12,000 Mercedes C-Class car from Saunderson, which was purchased using proceeds from his drug operations involving 34 kilograms of amphetamines.

Law enforcement authorities apprehended Saunderson after breaking into the encrypted EncroChat system, revealing details of his drug network and his connection to Pegg.

Pegg became the governor of HMP Kirkham, a category D men’s open prison, in 2018. Saunderson, who was transferred to the facility in June 2017, had previously been sentenced to a 10-year prison term for conspiracy to supply drugs and money laundering in 2014. The court heard that during her tenure, Pegg had granted Saunderson temporary release from prison.

Before marrying Saunderson, Pegg was perceived as a promising figure within the prison service, having progressed from a graduate entrant to the position of governor in just six years.

However, the prosecution argued that her personal financial struggles made her susceptible to exploitation.

Evidence presented in court indicated that Pegg had accumulated significant debts and had received multiple county court judgments that she had failed to disclose to her employer.

Prosecutor Barbara Webster stated, "Her downfall was twofold – the first, despite having a good income, she lived beyond her means." Pegg's financial difficulties were highlighted by the discovery that she had maxed out her four credit cards and had only 6 pence in her savings account.

During the trial, it was revealed that Saunderson had been active in prison rehabilitation programs, including BADD (Beating Alcohol and Drug Dependency), while simultaneously managing a significant drug operation.

Pegg claimed that her interactions with Saunderson were related to his involvement in the BADD program; however, evidence presented suggested that their relationship had begun earlier, even while he was incarcerated.

Detectives uncovered evidence of the close relationship between Pegg and Saunderson, including DNA samples found in Pegg’s residence.

Additionally, images of luxury goods such as designer clothing and handbags were introduced in court, underscoring Pegg's lifestyle that appeared inconsistent with her reported income.

After deliberating for over two hours and 40 minutes, the jury convicted Pegg on two counts of misconduct in a public office and one count of possession of criminal property.

Following the verdict, Judge Knowles indicated that a prison sentence was likely, though Pegg was released on bail pending sentencing.

Outside the court, a representative from the Crown Prosecution Service remarked on Pegg's actions, stating that her behavior represented a significant breach of trust, damaging public confidence in the prison system.