Navy SEAL Trader at Jefferies Helped Expose Hedge Fund Scandal

He was a Navy SEAL, before becoming a trader. Then someone messed with him.

Joe Femenia, the head of distressed-debt trading at Jefferies Financial Group Inc., set in motion one of the most astonishing falls-from-grace to captivate the world of hedge funds. The 43-year-old is the unidentified executive outlined in court filings last week, whose taped conversation led to the swift downfall of Dan Kamensky’s Marble Ridge Capital, according to people with knowledge of the matter.

Joe Femenia

Photographer: Amanda Gordon/Bloomberg

The saga has laid bare the rough-and-tumble ways of distressed investing, where investors look to pull every lever in their favor. ...