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Feds launch investigation into allegations of individuals renting out cells through Airbnb

Thriving rental business capitalizes on “Club Fed” reputation, appealing to hipsters and budget-travelers alike

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The cells, furnished with cable television and free WiFi, brought in as much as $200 per night.

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By C1 Staff

WASHINGTON — The FBI and the Federal Bureau of Prisons have opened an investigation into allegations that a small group of enterprising inmates at the Federal Prison Camp at Duluth (Minnesota) have been quietly slipping away from their minimum-security digs, renting cheap hotel rooms nearby, and charging a premium for their beds behind bars via the website Airbnb.

FPCs feature dormitory-style housing with either little or no perimeter fencing. These facilities have been dubbed “Club Fed” due to their relative luxury compared to high-security prisons, and it seems the inmates have marketed that reputation successfully on the online rental site.

According to documents obtained by the Association of the Press, since the growth in popularity of Airbnb, the group of ten men at FPC Duluth have made a business of renting out six cells to visitors during tourist season or when there is a big event being held nearby.

“Those cells are appealing to out-of-state visitors looking for a bargain,” said FBI Assistant Special Agent in Charge Dick Miller, who is leading the joint investigation. “Compared to some hot-sheet motels out there, Federal Prison Camps have comfortable accommodations and fine dining included. That’s a pretty great deal.”

The cells, furnished with cable television and free WiFi, brought in as much as $200 per night.

Mary MacDonald, who has stayed at FPC Duluth for her annual family vacation for three consecutive years, told the Association of the Press, “They offer a really great and cost-effective lodging option, particularly when you consider they include food and a very well-equipped exercise facility. Sure, the furniture is sparse compared to a five-star luxury hotel, but that’s one of the charming aspects of staying here.”

FPC Duluth is not just for bargain shoppers — many hipsters are drawn to the unique experience in part because of the relatively Spartan accommodations and the opportunity to mingle with the permanent residents of the facility.

There is evidence to suggest that there was widespread knowledge of the scheme, but other employees and inmates remained silent. Some even seemed to have welcomed their uninvited guests.

“We all knew something was up when a whole bunch of really young people with skinny jeans, epic beards, tattoo sleeves, and man buns started showing up in the mess hall,” said inmate Richard Floyd, who is serving time for participation in a complex Ponzi scheme. “This is not a hipster facility. The people housed here don’t have tattoos. Seeing all those kids suddenly come and go — that was a clue something was up.”

One prison employee who refused to be identified said, “We’ve gotten some really nice guests from places like Italy, France, and a whole host of places from around the United States. They’ve all been very friendly — unlike a bunch of mouthy inmates. Then again, the inmates are still better than the hipsters — those people are insufferable.”