MSA reg's can be confusing
Adam, i think your explanation/ interpretation of the regs was not exactly correct.
You may legally fly within 500' of a structure (or person) provided you do not hazard said structure/person(s).
It is not as simple as saying you are in violation of Minimum Safe Altitudes when you are operate with the 500' stand-off.
How about passing several hunded feet abeam someone or a boat, or a lone structure in a flat prairie... in straight and level flight?
You can see below that the exemption for helicopters get you out of the specific altitude requirements of paragraphs (b) & (c)- the 500' rule, but importantly at NO time is a helicopter exempt from paragraph (a).
This is not to mention that if the aircraft in question is a twin-engined helicopter operated in PC 1, then one could say that you are never hazarding anyone or thing in the event of a "power unit."- para (a) from the MSA regulation.
They'll still try to get you for "Careless & Reckless" operations, but even though they may lump on a MSA violation, just simply flying within 500' of something manmade or the man himself, is not necessarily a violation.
Sec. 91.119 — Minimum safe altitudes: General.
Except when necessary for takeoff or landing, no person may operate an aircraft below the following altitudes:
(a) Anywhere. An altitude allowing, if a power unit fails, an emergency landing without undue hazard to persons or property on the surface.
(b) Over congested areas. Over any congested area of a city, town, or settlement, or over any open air assembly of persons, an altitude of 1,000 feet above the highest obstacle within a horizontal radius of 2,000 feet of the aircraft.
(c) Over other than congested areas. An altitude of 500 feet above the surface, except over open water or sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle, or structure.
(d) Helicopters, powered parachutes, and weight-shift-control aircraft. If the operation is conducted without hazard to persons or property on the surface—
(1) A helicopter may be operated at less than the minimums prescribed in paragraph (b) or (c) of this section, provided each person operating the helicopter complies with any routes or altitudes specifically prescribed for helicopters by the FAA; and
(2) A powered parachute or weight-shift-control aircraft may be operated at less than the minimums prescribed in paragraph (c) of this section.