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." But see above - after request, unsealed. But detention memos, including in Part 1, not yet docketed.
From September 4:
2:33
pm
Zhao is at defense table in MDC tan jail uniform, with
Jacob Kaplan on his left, Teny Geragos on his right.
His parents are in the gallery, the only civilians but
for Inner City Press.
The AUSAs, with laptop, summon defense counsel to hall
to talk
Counsel
return
from hallway. There are 3 AUSAs & Pre-Trial
Services at the front table, Zhao and his two lawyers
at the back table. 2 US Marshals behind Zhao. There
are at least six from the US Attorney's Office now
here in the gallery. Slow Friday? Show of force?
While
waiting
for Judge Garnett, Inner City Press' question is why
the detention memo filed Sept 2 with Magistrate Judge
Cave - clearly a judicial document - is not in the
docket. It should be addressed, not only in this Zhao
case but all SDNY criminal cases
2:44
pm
All rise!
Judge Garnett: Although I have much respect for
Magistrate Judge Cave, my review is de novo. AUSA?
AUSA Rita Maxwell: We are seeking detention, as we put
in our letter of last night.
[Why is *that* judicial document not in the
docket?]
Judge
Garnett:
The payments for the July transactions, were they
through Coinbase?
AUSA: 2 separate accounts at Coinbase. But he utilized
bots to receive the CSAM. His interests were in incest
CSAM, particularly troubling in light of his small
children.
AUSA:
He was using 2 phones, one clean, one CSAM.
[Two more AUSAs have come into the courtroom. Will
they be docketing the Sept 2 detention memo, and the
"letter filed last night"?]
AUSA: He contemplated keeping sensitive filed on a
local encrypted device
AUSA:
He is a sophisticated actor bent on evading detention.
Asks Pre-Trial Services is they are able to check if
he is using VPNs or a dark web browser. He can just
use another phone. There is also a risk of
obstruction
AUSA:
Law enforcement was not able to quickly access the
apartment or his room. They had to use 14 hits of the
battering ram. They paused, he did not come out. When
they breach the door, his laptop had Find My iPhone on
it, I can hand up a photo
[Judicial document
Judge
Garnett:
Have you given a copy to Mr. Kaplan?
AUSA Maxwell: Yes, I emailed them to him.
[Why are these not in the public docket on PACER? The
judge is being asked to act on them]
AUSA: Find My iPhone can remoted wipe devices if they
are powered on
AUSA:
There is a risk he could destroy evidence if released.
On risk of flight: I am aware a $2 million bond feels
high. His apartment alone appears to be $2 million
dollars. He reports assets of around a million
dollars. There are 3 other properties.
Jacob
Kaplan:
The Government in their submission to the Court -
[why is this not in the docket? Meanwhile yet another
AUSA comes into courtroom]
Kaplan: They say he is a doctor, but he no longer has
access to the hospital. His children are in Germany
with his wife
Kaplan:
The last receipt of CSAM was in July 2025. That's
signficant.
Judge Garnett: They proffer material not presented to
Judge Cave that on the CSAM phone it continued until
at least December 2025
Kaplan: So 8 months.
Kaplan:
They
imply there is a rift with the parents, but look! They
are here. Every family has issues.
Judge Garnett: I wouldn't want people to quote what I
say about my family sometimes-
Kaplan: Me either.
Judge: They would not sleep in the same room with
him
Kaplan:
Pre-Trial
Services could some in anytime they want.
Judge Kaplan: Their investigation continues, it's only
that for now the more recent CSAM they've found is
December 2025. He has a note that says play MEGA
through the app, it doesn't transmit
Judge
Garnett:
They're saying you can view the CSAM in the app, and
not download it
Kaplan: The Find My iPhone app, he was not standing
next to the laptop, the body worn footage they've
shown us proves-
[These videos should be made available ( PACER no
video) so e
Kaplan;
His laptop does not turn off automatically, it stays
on. So who know when he used it-
Judge Garnett: The laptop was open, and it was on his
bed. I have supervised a lot of search warrants. Are
you saying the agents opened the app?
Kaplan: No
Zhao's
lawyer
Kaplan: Our submission lists other CSAM cases-
[why is that not on the public docket? When will it
be?]
Judge Garnett: Let's say I agree some of these
conditions could work - if he abides with them. Only
if
Judge
Garnett:
Right near this courthouse I can get a top-of-the-line
burner phone.
Zhao's lawyer: The note talks about using TOR, but he
didn't use it. It was just an AI prompt. No proof of
CSAM in the past 8 months.
Judge:
Risk of flight?
Zhao's lawyer Kaplan: The search warrant was executed
two weeks ago. He reached out to counsel, very
responsible.
[Zhao is looking up at Kaplan, and nodding]
AUSA Maxwell: We have still not accessed some of the
15 devices.
AUSA
Maxwell: They try to point to other defendant who got
bail, but this is not a sentencing where you consider
disparities between defendants. This is about this
defendant. He has fewer reasons to stay. He should be
detained.
Kaplan: He gave the passcode
Judge:
I understand the warrant allowed the agents to try to
access to devices with his face
AUSA: They tried to put it in front of his face but it
didn't work.
All rise!
Dozen AUSAs leave the courtroom. On word on docketing their memo or evidence. Zhao being shackled up again
More / analysis on X for Subscribers here
and Substack here
The case is USA v. Zhao, 1:26-mj-3587
(Cave)
