Wasn't there, sounds very like a rebel being reckless - however, it depends on the CBO rules he was expected to operate under as well as local regulations. The FAA circular no longer has a hard and fast rule about transition over roads/people etc. It is recommended only.
So what might be "reckless" at one CBO and hence against the rules, at another it may not be, and thus not "illegal".
From FPVFC's safety guidelines:
Operations Over People:
Flying over people is not explicitly prohibited under 44809, and the FAA AC 91-57C encourages CBO Safety Guidelines to include restrictions on operations over people. Flying over people could be dangerous and could be considered reckless. Either of those aspects could result in a local or federal municipality fining the operator or confiscating the aircraft. For these reasons, FPVFC recommends not flying over people.