Squatter who nearly owned NYC hotel, declared mentally incompetent in fraud case
NEW YORK - A man charged with fraud for claiming ownership of a New York City hotel has been found mentally incompetent and unfit to stand trial, prosecutors said Wednesday.
Mickey Barreto, accused of forging a deed to take ownership of the New Yorker Hotel, had allegedly lived rent-free for five years by exploiting a loophole in city housing law.
In February, prosecutors charged Barreto with 24 counts, including felony fraud and criminal contempt. Authorities say he went as far as demanding rent from one hotel tenant and instructing the hotel's bank to transfer its accounts to him.
What is a squatter?
PropertyClub, a real estate consultant firm in New York, defines a squatter as "someone who moved into a property and lives there without the owner’s permission or knowledge."
It takes 30 days of occupancy for a squatter to be considered a legal tenant.
The difference between squatting and trespassing is that a squatter has the intention of taking ownership or claiming the property as their own, according to the New York State Unified Court System.
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In some instances, squatters will even pay taxes in efforts to back up their possession claim.
Barreto reportedly used a quirk in New York City housing law to argue for tenant's rights after a $200 one-night stay.
He claimed that because the hotel didn't send a lawyer to an early hearing, he was able to secure a favorable outcome. Barreto said he had tried negotiating a lease with the building's owners, the Unification Church, but received no response.
Doctors have since concluded that Barreto is not mentally competent to face criminal charges, leading Judge Cori Weston to set a deadline of Nov. 13 for him to secure inpatient psychiatric care. Barreto had been receiving outpatient treatment for substance abuse and mental health issues, but doctors found he didn't fully understand the criminal proceedings, according to the New York Times.
Barreto claims that the push for his hospitalization stems from prosecutors’ lack of a solid case. "If you ask me if it’s better, in a way it is," Barreto told the AP. "I’m not being treated as a criminal but as a nutjob." He described the change in tone as prosecutors shifted their focus from labeling him as a criminal to advocating for his treatment.
The New Yorker Hotel
NEW YORK, NY - NOVEMBER 27: The sun sets on the iconic New Yorker hotel sign on November 27, 2020 in New York City. (Photo by Gary Hershorn/Getty Images)
Known for its iconic "New Yorker" sign, the hotel was built in 1930 and became a landmark in midtown Manhattan. It once housed NBC’s broadcasts in the Terrace Room before closing in 1972. After being used for church purposes for years, the hotel reopened as a guest accommodation in 1994.
The Associated Press contributed to this report.