I had considered this but wanted to keep my post simple, if Pilot #2
was unaware that Pilot #1 was not legal, pilot #2 might be able to
convince the FAA that he was not aware that he was PIC. Otherwise the
legal precedence that the FAA seems to take is that the most qualified
pilot is the most legally responsible.

IF pilot #2 is a 10000hr ATP and they end up busting the Washington
ADIZ who do you think the FAA is going to go after? (the answer is
probably would be both, but I think the legal PIC would be in the most
hot water)

Brian