SDNY COURTHOUSE, Sept 4 – A New York City doctor with millions of dollars was arrested on child porn charges after his bedroom was opened with a battering ram and his devices searched. On September 2 he was brought in for a bail hearing, represented by Jacob Kaplan and Teny Geragos who also represent Luigi Mangione, the Alexander brothers and Sean Combs before them. Inner City Press was there, through the oral order to free William Zhao on $2 million bond (the AUSA said they might appeal) and live tweeted, here and below.
On Friday May 4, with the case 26-mj-3587 still listed as sealed so it cannot be followed on PACER, Inner City Press wrote to the chambers of the SDNY Part 1 judge for the week:
" I covered both of the above cases in the Magistrates Court on September 2; the AUSAs said they might or might not be appealing on Friday to Part 1 (which I understand this week means your courtroom). But even now at 11 am on Friday, September 4, both of the above cases are listed in PACER as "sealed," and no documents can be seen. No appeal papers, no complaints, no scheduling of how to cover the appeal. First, could you or your staff let Inner City Press know if there are appeals and if so, when argument is set? Second, this lack of transparency in the process should be avoided in the future. Even if a complaint is sealed prior to an arrest, it should be unsealed quickly thereafter. Here, in these two cases and others, it has been more than two days. If appropriate, please docket this second request in the two cases - and unseal them?"
This came back:
Mr. Lee, The Court is in receipt of the
email below. Kindly note that Judge Garnett will hear an
appeal of the bail decision in US v. Zhao (26-mj-3587)
today at 2:30 p.m." Inner City Press intends to live
tweet.
More on X for Subscribers here
and Substack here
Before the argument on September 4,
USA v. Zhao was unsealed. But the docket did not list his
lawyers - and did not contain the US detention memo the
AUSA gave to the Magistrate Judge on September 2, and
referred to in argument. Inner City Press has filed a
application it be docketed. For now, given its graphic
nature, the now-unsealed Complaint is on Patreon here
From May 2:
AUSA
Maxwell: Mr. Zhao was arrested this morning at 7:45 am.
We have an FBI agent with us here at the Government's
table.
Magistrate Judge Cave: You are charged with receiving
CSAM on your cell phone, at your residence in Manhattan,
including pre-pubescent minors
AUSA
Maxwell: The Government earlier today submitted a letter
for detention
[Inner City Press notes: unlike in EDNY, prosecutors
here do not docket these detention letters. In fact,
this morning when Inner City Press searched this docket
it said "sealed"]
AUSA:
He paid for the CSAM on a crypto currency platform, with
Bitcoin. When he saw a preview, he noted that he had
some of the files already. The videos are horrific -
prepubescent. He is a husband and father, there is
serious concern about his children
[In
this courtroom, a trucker with guns and 300 CSAM videos
was just ordered released - so it may be that Geragos
and Kaplan have this one]
AUSA: The defendant's mother came out, but the defendant
did not until 14 hits from a battering ram. They found
his laptop
AUSA:
He had "Find my iPhone" open, it can wipe the phone. He
had MEGA open. There is a serious risk of obstruction of
justice. This defendant has significant international
ties, his wife and children go abroad
AUSA:
He has millions of dollars and access to business
accounts. He is a doctor. He should be detained.
Judge Cave: Were any files deleted?
AUSA: We do not have that information. He had 14
devices: laptops, phones, and tablets.
Jacob
Kaplan:
His parents are here. His wife now in Germany supports
him, she will keep the children there for the
foreseeable future. If they do, they could access
another apartment in the city. He has been suspended
from his medical position.
Jacob
Kaplan:
They did a search a year ago too. All the have is
conduct from July 2025 - more than a year old. The
payments stopped a year ago. Their memo [not available]
does not mention his room was far from the front door.
He was not near the laptop
Jacob
Kaplan:
Between Mr. Zhao and the laptop, there was a rowing
machine. He voluntarily gave the passcode to a number of
the devices. In a border search a year ago, he also gave
his passcode. He has not been charged with obstruction.
The raid was in August.
Jacob
Kaplan:
The Government immediately puts these devices into
airplane mode. He cannot wipe them. What did he do? He
hired counsel, us, and gave us his passport. He can be
released on $2 million bond secured by family's four
properties, one commercial
Jacob
Kaplan:
We propose Mr. Zhao does not live with his children.
There are 2 apartments in Manhattan, & a property in
Queens. He has community ties here.
Judge: 14 hits of the battering ram, that gives me
concern.
Kaplan: It was 6 am. There was a lot going on
Jacob
Kaplan:
Give him a chance.
Judge: He tried to cover his tracks with Bitcoin and
VPNs
Kaplan: This is not unique to Mr. Zhao. People do not
want to buy CSAM with their credit card or write a
check. If you want, no electronic devices.
AUSA:
We want to make sure the record is clear
[Inner City Press: does this mean, for appeal?]
AUSA: He was using bots, to not pay for the CSAM. It
took 90 seconds to open his door, he was given a chance
to open. Find My iPhone does not work if a device is
off
AUSA:
Law enforcement today had the doorman call upstairs and
say there was a package downstairs. That's why he came
down. Detain him.
Jacob Kaplan: There was a rowing machine. They couldn't
open it with the biometrics. He helped them. Many get
bail for this
Judge
Cave: Give me a minute.
[Dead silence here in the courtroom. btw the "mysterious
visitor" has applied for a Magistrate Judge position in
SDNY - more to follow]
Judge Cave: I find, Mr. Zhao, that you have rebutted the presumption and that I can release you. You pose a danger, but you no longer have access to patients or to your children... Bond of $2 million secured by property, live with your parents
At 6 pm the case was still listed as "Under seal."
More / analysis on X for Subscribers here
and Substack here
The case is USA v. Zhao, 1:26-mj-3587
(Cave)
