Second Chicago Terror Suspect Pleads Guilty

David Headley is cooperating with the investigation

Accused terror suspect David Headley pled not guilty today to a raft of terror charges connected with the '08 Mumbai terror attacks, and prosecutors say his sentence could carry the death penalty.

Headley is also accused of plotting attacks against a Danish newspaper. He and co-conspirator, Tahawwur Hussain Rana, were arrested in October '09 in that plot, codenamed "Mickey Mouse".

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.

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