In my imagination, yes, but because it's a residential lot, I don't see them when I'm playing that lot. I have a placeholder sim in the lot who's employed by the "city." (I have a placeholder sim at "City Hall" hire them as an OFB employee. When there aren't any prisoners, the sim living in the police station goes off the lot to work. When there are, I use Inge Jones' institution sign to stop the carpool from coming.)

I play a prison as a residential lot. One sim in the law enforcement career lives on the lot at all times.The prison is nonfunctional if there are no sims in the law enforcement career. Sims are sent there after 5 strikes of crime, including:
-Property theft (most commonly newspapers, but also the gnomes/flamingos and the livestock that I have from the keep)
-Kicking over the trashcan
- Public fighting (any fighting that occurs either on a community lot, or two sims fighting in a 3rd party's house.

Certain crimes are automatic prison sentences inc:
- "child abuse" (children being taken away by social workers)
-"pet abuse" (pets being taken away by animal services)

Once a sim reaches 5 strikes they are sent to court. A judge determines their term length on a dice roll:
1 - 1 term
2 - 2 terms
3 - 3 terms
4 - 4 terms
5 - life
6 - no jail time & strikes reset

One term = 1 season.

And of course, rich sims can bribe their judge to get the sentences lower. $50,000 to reduce it down one term.