As mentioned, the strategy is perfectly legit. Nothing illegal. It was a strategy that I understand many non Stormers also employed. The problem isn't the strategy itself...it is how it was sold to the clients, the clients it was sold to and further on, how Storm's advisers managed everything when the **** hit the fan during the GFC.
For all intents and purposes it is a sound strategy provided the client understands it and is prepared to accept the risks they are taking for the potential returns they are getting. Just like any legal financial strategy.
No professional when reviewing the strategy could be expected to identify that Storm were completely unable (or unwilling) to do what they said they would and properly manage your investments as they fell down the drain. Noone could have forseen that, and it is a separate issue.
But they should be able to identify that this is not a conservative strategy that will protect your hard earned as some have claimed they thought it was, and that the strategy itself is on the high risk side of things because shares and gearing, by their very nature, are high risk....no matter how you use them.
Did the professionals point this out to you, or could they not even see this themselves?