[Signalman]

guests without pilot licenses were allowed to fly the aircraft

With fixed-wing general aviation aircraft (Cessna etc.), a non-certificated person can "fly" (manipulate the controls) of the aircraft as long as the "Pilot-in-Command, (PIC) holding a valid pilot certificate is sitting in the cockpit with the ability to immediately take over control of the aircraft.

A helicopter is trickier to fly than a fixed wing so I'm not sure about the rules for helos.

[HartleyMBaldwin]

Without knowing any of the details, I’d guess the situation was similar to what you describe. (I’d also bet that the unlicensed individual would not be doing the takeoff or landing.) There are probably quite a few former military helicopter pilots who didn’t keep their licenses current but who still know how to fly.

I personally don’t want to get aboard any helicopter unless I have to, no matter what it is or who’s flying it. I rode in enough when I was a lot younger.