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CHICAGO: Pakistani-American terrorist David Coleman Headley has admitted he told one of his wives that he "made a fool" of his childhood friend Pakistani Canadian Tahawwur Rana, his co-accused in the Mumbai terror attack trial.

"I acknowledge that I made a fool of him. He should be released. Poor fellow is stuck for no reason. It was my fault," Headley allegedly told his spouse, Rana’s lawyer Patrick Blegen told a Chicago Federal court Tuesday, Chicago Sun Times reported.

He repeatedly took advantage of Rana since they first met in 1974, Headley aka Daood Gilani, Washington born son of a Pakistani father and an American mother, told the wife.

He made the statement after the two Pakistani military school buddies were arrested in Chicago on charges related to the Mumbai attacks and a thwarted plot targeting a Danish newspaper.

When confronted with those telling statements by Blegen, Headley clarified that he meant he duped Rana by "using him" and "getting him to assist", the Sun Times said.

Headley, with Rana’s blessing, set up a phony Indian office using Rana’s immigration business’ name so Headley could scout targets for the Pakistan-based Lashkar-e-Taiba terrorist group before the 2008 Mumbai attacks, according to prosecutors.

After five days on the stand, Headley finished testifying Tuesday, confessing he has spoken to relatives about the possibility of cashing in on a book or movie about his experiences.

Headley also said if he’s ever released from prison, he’d like to "fix" misperceptions the media and the public has about Islam.

During Blegen’s cross examination, Headley revealed that Illyas Kashmiri, commander of the Pakistani-based terrorist organisation Harakat-ul-Jihad al-Islami (HuJI), allegedly tied to the Danish plot, had discussed killing the CEO of US defence contractor Lockheed Martin Corp in retaliation for drone attacks in Pakistan.

Also, according to court testimony ON Tuesday, Headley underwent 18 months of psychological treatment in 1997 and was diagnosed with having a "mixed personality" disorder in 1992.