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In August 2008, eBay filed suit against Dunning and his brother, accusing them of defrauding eBay and eBay affiliates of $5.2 million in a cookie stuffing scheme for their company, Kessler's Flying Circus. In June 2010, based on the same allegations and following an investigation by the Federal Bureau of Investigation, a grand jury indicted Dunning on charges of wire fraud.[18] On his Skeptoid blog, Dunning stated "There are several legal reasons that the lawsuit is improper, and we’ve been fighting it on that basis."[19] On April 15, 2013, in San Jose, CA federal court, as part of a plea agreement, Dunning pleaded guilty to wire fraud. The largest penalty for committing wire fraud is 20 years in prison.[20] Dunning faces a maximum sentence of 29 months in confinement and no fine.[21] Dunning admitted that he received payments to which he was not entitled, but has "reserved the right to dispute how much of those payments were attributable to the cookie stuffing scheme".[20]