Petite blonde jail boss brought down by a pair of Hugo Boss flip-flops and the DNA of her drugs kingpin lover

In the end, Kerri Pegg’s fate was sealed by a pair of size ten Hugo Boss flip-flops, a toothbrush and a second-hand Mercedes.

But the root of her downfall had its origins in an altogether more hi-tech piece of detective work.

In 2020, law enforcement agencies hacked into an encrypted phone network, leading to more than 3,000 of the most dangerous criminals in Britain being arrested.

Among those subsequently convicted of an array of crimes were drug traffickers, hitmen and murderers.

Yesterday, Pegg, a ‘petite, blonde and bubbly’ 42-year-old, joined their number as she was found guilty of misconduct in public office over her relationship with a known criminal.

Like others brought to justice in what has been described as the most successful operation against organised crime in British policing history, she was no stranger to the workings of the underworld. But, unlike them, she was supposed to one of the good guys: a prison governor.

A former probation officer, Pegg had been fast-tracked into and then up the prison service.

In the space of just six years the ‘rising star’ went from graduate entrant to senior prison manager.

Kerri Pegg's fate was sealed by a pair of size ten Hugo Boss flip-flops, a toothbrush and a second-hand Mercedes

Kerri Pegg’s fate was sealed by a pair of size ten Hugo Boss flip-flops, a toothbrush and a second-hand Mercedes 

It was while helping to run HMP Kirkham, a men's prison in Lancashire, that Pegg first became 'emotionally and personally' involved with inmate Anthony Saunderson (pictured)

It was while helping to run HMP Kirkham, a men’s prison in Lancashire, that Pegg first became ’emotionally and personally’ involved with inmate Anthony Saunderson (pictured) 

Pegg's £12,000 Mercedes C class car was paid for by 34 kilos of amphetamines by Saunderson, a major organised crime boss

Pegg’s £12,000 Mercedes C class car was paid for by 34 kilos of amphetamines by Saunderson, a major organised crime boss

But, to the background of what emerged during her week-long trial at Preston Crown Court, questions are now being asked as to how on earth she was deemed a suitable candidate to hold such a position – and why she wasn’t sacked sooner.

Not only did she have a reputation for ‘not playing by the rules’, but the designer label-loving Pegg, who took time off work to have a breast enhancement operation, lived a lifestyle that outstripped her earnings.

Unpaid debts had led to three county court judgements being made against her, making her vulnerable to exploitation – as did her habit of becoming ‘inappropriately close’ to the prisoners she was in charge of.

And it was while helping to run HMP Kirkham, a men’s prison in Lancashire, that she first become ’emotionally and personally’ involved with inmate Anthony Saunderson.

For a time the 44-year-old had been one of Britain’s most wanted fugitives and was serving ten years for drugs offences.

Precisely what the pair would discuss in their regular one-to-one meetings in her office is unclear. Pegg insisted nothing untoward happened, saying she liked to be ‘hands on’ with the prisoners, with whom she had an ‘open door’ policy.

But their liaisons did not go unnoticed by others. Deemed a ‘risk to the integrity of the prison’, Pegg was first moved to back-room duties. Then, against the rules, she tried to sign off a request by Saunderson to be released on temporary licence.

Two days later she was transferred to another prison. But their relationship resumed when Saunderson was released in 2019.

Pegg 'had a promising future until she started to play outside the rules,¿ but the prosecutor told the jury, ¿Anthony Saunderson was her downfall¿

Pegg ‘had a promising future until she started to play outside the rules,’ but the prosecutor told the jury, ‘Anthony Saunderson was her downfall’

Breaking Bad starred Bryan Cranston as Walter White (left) and Aaron Paul as Jesse Pinkman (right). Saunderson allegedly used the name Jesse Pinkman, a meth dealer in the TV show

Breaking Bad starred Bryan Cranston as Walter White (left) and Aaron Paul as Jesse Pinkman (right). Saunderson allegedly used the name Jesse Pinkman, a meth dealer in the TV show

Unreformed by his time inside, he became the kingpin in a gang manufacturing and dealing amphetamines, even adopting the moniker Jesse Pinkman, after a drug-dealing character on TV series Breaking Bad.

His gang’s communications relied on an encrypted phone network called Encrochat, then the go-to messaging service for crooks around the world.

Unknown to them, by April 2020 law enforcement agencies had hacked in to it, giving them access to millions of incriminating messages.

Not only did it lead to Saunderson and his gang being busted by police, but also to the married man’s ongoing relationship with Pegg being revealed.

Among the messages was one detailing how he had gifted Pegg a Mercedes coupe worth £12,000 – which he had paid for in drugs. When police became aware of the link, they raided Pegg’s house. They found the Mercedes outside and, inside, a ‘burner’ phone, a toothbrush and a pair of men’s flip-flops. The latter two items were found to have Saunderson’s DNA on them.

Despite her tearful denials in the witness box that she had ever been in a relationship with him, a jury took less than three hours to convict her.

She will be sentenced on Monday afternoon, with Judge Graham Knowles warning her: ‘I have no choice but to send you to prison given the gravity of your offending.’

Born in Stockport, Pegg’s early life didn’t hint at the drama of the years to come. At sixth form college she juggled jobs at Thorntons and Costa Coffee before working at Jobcentre Plus as a customer adviser.

Pegg was arrested in 2020 and charged with two counts of misconduct in a public office, one by having a relationship with Saunderson and the second by failing to disclose county court judgments about her debts

Pegg was arrested in 2020 and charged with two counts of misconduct in a public office, one by having a relationship with Saunderson and the second by failing to disclose county court judgments about her debts

In the space of just six years the ¿rising star¿ went from graduate entrant to senior prison manager

In the space of just six years the ‘rising star’ went from graduate entrant to senior prison manager

On the recommendation of a friend, she qualified as a probation officer, aged 23.

The previous year she had married a landscape gardener called Stephen Pegg, with whom she would renovate a number of period properties. But when they later divorced, Pegg was left with little money or a home of her own.

Following the police investigation, Pegg was arrested at her home on November 19, 2020, and charged with two counts of misconduct in a public office, one by having a relationship with Saunderson and the second by failing to disclose county court judgments about her debts.

She was also charged with possessing criminal property, the Mercedes car.

Pegg, who had been working for a homelessness charity in Wigan since resigning from the prison service in 2021, was denied bail and remanded in custody.

As for Saunderson, he was jailed for 35 years for his part in the drugs ring, meaning the pair will soon both be back behind bars. Albeit, this time, not in the same prison.

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