NEW YORK – TO accused man accused of fraud for claiming ownership of a New York City hotel has been declared mentally incompetent and incapable of standing trial, prosecutors said Wednesday.

Mickey Barreto, accused of falsifying a property title to the New Yorker Hotel, would have lived rent-free for five years taking advantage of a legal loophole in city ​​housing law.

In February, prosecutors charged Barreto with 24 counts, including felony fraud and criminal contempt. Authorities say he went so far as to demand rent from a hotel tenant and order the hotel’s bank to transfer his accounts.

What is a squatter?

Property Cluba New York real estate consultancy, defines a squatter as “someone who has moved into a property and lives there without the permission or knowledge of the owner.”

30 days of occupancy are needed for a squatter to be considered a legal tenant.

The difference between squatting and transfer is that a squatter intends to take possession of or claim the property as his or her own, according to the unified court system of the state of New York.

Barreto is said to have used a quirk of New York City housing law to defend tenants’ rights after a $200 overnight stay.

He claimed that because the hotel did not send an attorney to an early hearing, it was able to obtain a favorable outcome. Barreto said he had tried to negotiate 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, prompting Judge Cori Weston to set a Nov. 13 deadline for him to obtain inpatient psychiatric care. Barreto had been receiving outpatient treatment for substance abuse and mental health issues, but doctors discovered he did not fully understand the criminal process. according to the New York Times.

Barreto claims the pressure for his hospitalization is due to prosecutors’ lack of a solid case. “If you ask me if it’s better, in a way it is,” Barreto he told the AP. “They don’t treat me like a criminal but like a crazy person.” He described the change in tone as prosecutors shifted their focus from labeling him a criminal to advocating for his treatment.

The New York 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 hosted NBC broadcasts in the Terrace Room before closing in 1972. After being used for religious purposes for years, the hotel reopened as guest accommodations in 1994.

The Associated Press contributed to this report.