Counterparty risk in the form of investment fraud damages a retiree’s nest egg. Does fraud negatively impact portfolios … determine the average reduction in portfolio success of a retiree who experiences fraud. Findings suggest that each incidence of … fraud results in a loss of three percentage points in retirement success. However, portfolios containing some bonds (75 …

Using a panel of mandatory SEC disclosure filings we test the predictability of investment fraud. We find that past … regulatory and legal violations, conflicts of interest, and monitoring, are significantly associated with future fraud. Avoiding … the 5% of firms with the highest fraud risk allows investors to avoid 29% of investment frauds, and over 40% of the total …