You believe this elementary fact in their own rules escaped the FAAs lawyers?
FAA: You flew flights with unqualified pilots and with private ratings.
TapJets: All our flights were legal under FAR Part 91.501.
They didn’t dispute that the flights happened, and they didn’t dispute that they had passengers. They didn’t claim that the pilots did have commercial ratings. Thus, they must be claiming that they viewed the flights as non-commercial.