A prison governor began a relationship with a drug dealer who gave her a £12,000 Mercedes after she released him from jail, a court has heard.
Kerri Pegg, 42, became involved with inmate Anthony Saunderson while governor at HMP Kirkham in Lancashire, it is alleged.
Ms Pegg is 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 judgements about her debts.
She is also charged with one count of possessing criminal property, the Mercedes, from Saunderson.
Ms Pegg denies all the charges.
Preston Crown Court heard that Ms Pegg was seen as a “rising star” in the Prison Service and climbed the ladder from graduate entrant to prison governor in just six years.
But she “lived beyond her means”, Barbara-Louise Webster said as she opened the case for the prosecution.
“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.”
Ms Pegg became “emotionally and personally involved” with Saunderson, a serving prisoner, and accepted a Mercedes C class car from him, the court heard.
“[That] was paid for by him out of his proceeds of criminal activity ie trading in drugs.”
When Ms Pegg’s home was raided, a toothbrush was found with Saunderson’s DNA on it, the court heard.
Ms Webster said there were concerns about Ms Pegg being inappropriately close to prisoners from the start of her time at Kirkham.
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 specific rules for how they should be dealt with – rules which Ms Pegg broke, Ms Webster said.
She did not have 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 encrypted mobile phone, used by serious, organised criminals to secretly communicate.
When the system was cracked by law enforcement agencies it showed Saunderson was involved in serious drug trafficking. He has since been convicted for those offences.
But other messages also showed the “ongoing nature” of his relationship with Ms Pegg, the court heard.
On April 6 2020, Saunderson was sent a message on Encrochat saying “car her 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.
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 Ms 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?”
Ms Pegg was arrested at her home on November 19 2020, with police finding expensive items of designer clothes.
The trial continues.
