My thought on the OP was as others have said: I wonder if he started having cardiac issues at depth and that triggered the difficulty breathing.
To play Devil's advocate for a moment (keeping in mind the story is only the prosecutors' side):
Coming up from a 100' (30 m, as reported) dive that safety stop is less than a trivial item. No, not "required" but more important than a standard safety stop. Discussion above establishes that.
I think this was a "Deep Diver" certification, not the "Deep Dive" of AOW. I haven't looked it up, I think this means you'd have to have a staged bottle at your safety stop. I'm going to ass-u-me that such existed, and was being used. Could be wrong. Either way, there appear to have been plenty of cylinders and spare regs around, given the switching back and forth. A staged bottle is a bit easier for the OOA diver to use than shared-air, IMHO.
I'll take the instructor at his word that he only grabbed the diver once and signalled to stay down, he didn't physically restrain him. (There were other divers on site who can corroborate or contradict this in court; the fact should be easy to establish.)
The only issue the diver indicated was wrong was that he was out of air (twice). There's no indication he gave a thumbs up to request ending the dive, or indicated a cardiac event. (He likely wouldn't have known. But then neither would the instructor.) He did attempt to ascend.
The way I read the story, I think he asked the diver to stay at depth and the diver complied. That could be construed as "holding" the diver at depth. Like a police officer controlling an intersection might "hold" traffic going one direction while cross-traffic proceeds.
Now taking off the defense attorney's hat, here's where I think the instructor erred for sure:
He had an apparently out of air diver. As in totally out, no air in his main tank or any ponies, backups, etc. that diver had on their person. Training at that point suggests the diver and his buddy should ascend to 15', hold the safety stop if air remaining allows, then ascend to the surface. Continuing the dive shouldn't be done.
OK, so let's say he continues the dive anyway. Somewhere in this process, especially after a second OOA, I'd have checked the pressure gauge. Is the tank empty, or is it a reg problem, or user error? TBH, even if a student indicates low on air I'll still visually check the gauge. Especially at a safety stop where you've got time and a whole lot of nuttin' to do. I'm really curious if the diver was in fact out of air or just had trouble breathing.
The prosecutor states the victims' eyes were "dilated." That's odd wording, at least to my North American ears. Were the eyes wide open (which I think this literally means, but is something I wouldn't say) or were the PUPILS dilated? This matters: If I see dilated pupils, I presume medical emergency and we ascend. Not sure I'd notice it in a masked face underwater, but if I did it's dive over now and emergency rescue protocols kick in. If it was "eyes wide open" I'd have signalled the diver to calm down and breathe deeply. I'd be paying attention to breathing pattern to see if they were breathing rapidly and shallowly. At that point, I'd be hyper-focused on the diver and asking if they were OK. If they say no, it's dive over.
Then there's the "regulator slipped from his mouth" several times, pretty much as he passed out. Besides making me more convinced a medical event was already in process, this is one red flag too many. I'm going to assume the diver really was passing out. There should have been other signs, like lethargic recovery of the reg or a change in how arms are held. If so, again, rescue protocols should kick in.
Lastly, a line I use with all student divers (and not my own creation): Better bent on the surface than dead underwater.
I really would like to hear from the DM on this. What was their perspective on how things were handled?