Craziest real estate story I have ever read and of course it had to do with NYC's insane rent control laws.
A man checks into a hotel owned by the Moonies across from Penn Station and researching old laws requests a 6 month lease. Through various maneuvers, he gains title to and lives rent free in the hotel for 5 years.
https://lnkd.in/gPfdf8sX
"Mr. Barreto had prevailed in two separate court proceedings; he had a right to a rent-stabilized lease for a room at the New Yorker Hotel. He had access to room service, housekeeping and all the hotel’s facilities."
"But he refused to sign a lease — or pay rent."
"Mr. Barreto now had a recorded deed showing he had ownership of the hotel, but the true and only owner since 1976 was still the Unification Church.
Mr. Barreto’s next moves went far beyond the rights of a now permanent guest.
He immediately fired off an email to a lawyer for the hotel, demanding to know about the property’s recent finances, and included a claim that he was owed $15 million in profits.
“That payment is past due,” he wrote, “and is due immediately.”
A few days later, another demand: The 38th floor needed to be cleared of guests. “I need to do an inspection of the building with my architect ASAP,” he said.
The lawyer quickly responded, “What are you referring to?”
“I have ownership rights in that building,” Mr. Barreto replied. “That’s what I’m referring to.”
"Next, Mr. Barreto walked into the Tick Tock Diner, which is connected to the lobby by double doors. He dropped off a letter addressed to the owners. Monthly rent checks, he wrote, should be sent to a new address: Room 2565."
"Across the country, it is not uncommon for overworked municipal recorders to accept property filings under the assumption that they are legitimate, and for real estate speculators to take advantage of the system.
But Bill Lienhard, a lawyer who has represented many victims of deed theft in New York City, said he was stunned by the apparent ease with which Mr. Barreto transferred a 41-story Manhattan hotel into his name."
“Boy,” he said, “this takes the cake for the city’s record department not paying attention.”
"Mr. Barreto also delved into the Unification Church’s origins on the Korean Peninsula, its expanding economic interests on other continents and its business connections with North Korea. He started to believe that leaders of the church were sending its income, including from the hotel, to North Korea in violation of sanctions imposed by the United States.
In an interview, Mr. Barreto said that his concerns about the finances of the religious organization became the main driver for staying in the hotel. He called it his patriotic duty as an American citizen, likening his efforts to someone having been able to stop one of the hijackers before the Sept. 11 attacks."
"The transfer caused the hotel to lose a property tax exemption, resulting in a $2.9 million increase on its property tax bill."
