New Yorker's 5-Year Free Hotel Stay Ends In Ownership Battle

A man in New York City found a way to live in a prominent Manhattan hotel without paying anything for five years by exploiting a lesser-known local housing regulation. Prosecutors have now accused Mickey Barreto of taking things too far, reported news agency Associated Press. 

They claimed Mr Barreto attempted to assert ownership of the entire New Yorker Hotel building and even tried to charge rent from another tenant.

The report added that Mr Barreto, 48, was arrested on Wednesday and charged with filing false property records. He expressed surprise at the police's aggressive approach, stating that he believed the matter should be handled as a civil case rather than a criminal one, the report added.

Mr Barreto's recent indictment on fraud and criminal contempt charges marks the latest development in a legal saga that began years ago. It all started when he and his boyfriend paid a mere $200 to rent out one of the many rooms in the towering Art Deco New Yorker Hotel, which has over 1,000 rooms and was built in 1930.

Shortly after moving to New York from Los Angeles, Mr Barreto's boyfriend informed him about a loophole. This legal loophole enabled individuals residing in single rooms within buildings constructed before 1969 to request a six-month lease arrangement. 

Mr Barreto asserted that because he had paid for a night's stay in the hotel, he qualified as a tenant under this provision, the report mentioned.

After requesting a lease from the hotel and subsequently being rejected, Mr Barreto took his case to court the following day. Despite the initial denial by the judge, he persisted and appealed to the state Supreme Court, where he emerged victorious. 

Following the court's ruling, the judge ordered the hotel to provide Mr Barreto with a key. From that point onward, Mr Barreto asserted that he resided in the hotel until July 2023 without paying any rent. 

He explained that despite the building's owners showing no interest in negotiating a lease with him, they were unable to evict him from the premises.

Manhattan prosecutors confirm that Mr Barreto was granted possession of his room by the housing court. However, they allege that he went further. In 2019, he submitted a forged deed to a city website, claiming ownership of the entire New Yorker Hotel building, the report added. 

This document purported to transfer ownership from the Holy Spirit Association for the Unification of World Christianity, which has owned the property since 1976. The church was founded in South Korea by Reverand Sun Myung Moon.

Mr Barreto then attempted to assert control over various aspects of the building, "including demanding rent from one of the hotel's tenants, registering the hotel under his name with the New York City Department of Environmental Protection for water and sewage payments, and demanding the hotel's bank transfer its accounts to him," as stated by the prosecutor office in a statement.

Manhattan District Attorney Alvin Bragg remarked, “As alleged, Mickey Barreto repeatedly and fraudulently claimed ownership of one of the City's most iconic landmarks, the New Yorker Hotel.”

In his statement, Mr Barreto said, “I never intended to commit any fraud. I don't believe I ever committed any fraud. And I never made a penny out of this.”