The Chicago man accused of helping organize the November 2008 terrorist attacks in Mumbai pleaded not guilty to terrorism charges Wednesday.
Defense attorneys have acknowledged that Headley is cooperating in the widening investigation. But lawyer John Theis says his client understands how serious the case is, and the possible penalties he would face.
"Mr. Headley is a very intelligent man who is participating very actively in the defense," Theis said. "He knows the seriousness and the gravity of the charges."
Despite his reported cooperation, Headley is still treated very much as an accused terrorist. He stood before Magistrate Judge Arlander Keys shackled at the ankles. And after court, his hands were cuffed behind his back, for his return to the downtown Metropolitan Correctional Center.
Headley is due in court again February 23.