Mickey Barreto in front of the New Yorker Hotel
Mickey Barreto in front of the New Yorker Hotel publicadosbrasil1 / YouTube screenshot

A New York man who lived rent-free for years in an iconic Manhattan hotel after exploiting a legal loophole will not face charges for fraud as he's ordered to seek psychiatric care, according to a report.

Mickey Barreto moved into the New Yorker Hotel in 2018 after paying just $200 for a one-night stay. The hotel saw the likes of high-profile guests like Muhammad Ali and Nikola Tesla, and was featured on popular TV Shows and films.

Barreto used a quirk in New York's housing laws to claim tenant rights after paying for the single night. Then, a technicality prevented the hotel's owners, the Unification Church, from evicting him after they missed an important court hearing.

In February, Barreto was charged with 24 counts, including fraud and criminal contempt, after allegedly forging documents to take control of the hotel, demand rent from other tenants, and try to seize the hotel's bank accounts.

Barreto's criminal case has now taken an unexpected turn. During a recent hearing, it was revealed that doctors determined him mentally unfit to understand the charges against him, the New York Times reported.

As a result, the court ruled that Barreto will not stand trial, but must instead seek inpatient psychiatric treatment.

"It went from being unfriendly, 'He's a criminal,' to oh, they don't talk about crime anymore. Now the main thing is, like, 'Oh, poor thing. Finally, we convinced him to go seek treatment,'" Barreto told AP News.

Judge Cori Weston tasked Barreto with finding a psychiatric facility by November 13. There, his mental health will be closely monitored. If Barreto is ever deemed mentally fit in the future, there could be legal repercussions for his actions.

"So if you ask me if it's a better thing, in a way it is. Because I'm not being treated as a criminal but I'm treated like a nutjob," Barreto said.

The hotel owners have not indicated any further legal action.

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