--Quoted from fdr's second post
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46317. Criminal penalty for pilots operating in air transportation without an airman’s certificate
(a) General Criminal Penalty.— An individual shall be fined under title 18 or imprisoned for not more than 3 years, or both, if that individual—
(1) knowingly and willfully serves or attempts to serve in any capacity as an airman operating an aircraft in air transportation without an airman’s certificate authorizing the individual to serve in that capacity; or
(2) knowingly and willfully employs for service or uses in any capacity as an airman to operate an aircraft in air transportation an individual who does not have an airman’s certificate authorizing the individual to serve in that capacity.
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So if they were operating the aircraft part 91, then they were not in violation of this statute. To be in violation they would have been "operating an aircraft in air transportation." Air Transportation generally means a flight carrying revenue passengers.
So what is the real issue here?
Did you get passed over for the job of flying this airplane?