The third point is critical: if the best of the best are after your information, you need the best of your best protecting it. And there is simply no way that a “homebrew” server is EVER going to have the security and resources appropriate to defend it adequately.

Looking at it this way, a “homebrew” server was the worst possible choice. Even using a webmail system like Gmail, Outlook or Yahoo would have been better because those companies have the expertise and capability to meet at least some of the threat this class of information would face.

This is the most important point. You can liken this to the CFO of Chase taking billions of dollars in cash home and storing it in the mattress. It’s so inadequate to meeting the risks that it would be laughable if it weren’t so serious.