How a man used legal loophole to live rent-free in a historic New York hotel where Muhammad Ali and Nikola Tesla used to stay

A New York man, Mickey Barreto, has been charged with fraud after allegedly exploiting legal loopholes to live rent-free for years in the historic New Yorker Hotel in Manhattan.

Barreto began staying at the hotel in 2018, claiming in court that his $200 payment for a one-night stay granted him tenant’s rights. He leveraged a technicality in New York’s housing laws, and when the hotel’s owners, the Unification Church, missed a critical hearing, he argued that they could not legally evict him despite not paying rent.

The New Yorker Hotel, an iconic Art Deco building from 1930, is known for its large red sign and historical ties to famous personalities. Muhammad Ali and other boxers used to stay there when they had bouts in the nearby Madison Square Garden. Famous inventor Nikola Tesla also said to stay in one of the rooms of the hotel for over a decade. The hotel closed in 1972 and served church purposes until part of it reopened in 1994.


In February, Barreto was charged with 24 counts, including felony fraud and criminal contempt, after allegedly forging a deed that falsely transferred ownership of the hotel to himself. Barreto reportedly attempted to collect rent from a hotel tenant and even sought control of the hotel's bank accounts.

However, Barreto has since been found unfit to stand trial. Doctors determined he was not mentally competent to face the charges, and prosecutors confirmed this assessment during a court hearing. Judge Cori Weston has given Barreto until November 13 to secure inpatient psychiatric care. Previously, he had been receiving outpatient treatment for substance abuse and mental health issues.

While Barreto dismissed allegations about substance abuse as simply “partying,” he suggested that the hospitalization request was a tactic by prosecutors due to a weak case.