I don't think that's true. I see powered paragliders out at the beach all the time, and to my knowledge that was perfectly legal as long as you are licensed properly.
I suspect that the story here is that until things went wrong nobody expected that this was a risk-taking activity in the first place (any more so than paragliding in general is). Do we have reason to believe he was doing it unsafely before disaster struck and he lost control?
Whether "medical event" was prior to or resulted from risk-taking adventure,
and hence culpability, will await forensics I imagine. If those are possible.
That determination aside however,
risk-taking that puts others at risk (e.g., flying over other people) is morally and in many jurisdictions legally prohibited for obvious reasons.