RAVE valve...
Your engines are the 110 hp Rotax 787cc engines. It sounds to me that you've got failure in a RAVE valve, which is a guillotine valve that controls the exhaust flow when the engine rpm is increased.
Although it doesn't happen often, they have been known to break or chip, causing this type of damage. If you look from the top of your boat toward the engine, these valves are under the small, round plastic caps with the red adjuster cap in the center.
Look at the bottom of this post, in my signature. You'll see a link "a look inside the 787". Click on it and it'll take you to my thread on which I tear one of these engines down and you can take a look at what this is and it's description.
Sorry to hear about your misfortune but it wasn't your buddies fault. This was bound to happen if you did not take it apart yearly for cleaning. This is a requirement by BRP's maintenance program and if not cleaned, the carbon build up could have helped cause the destruction. :cheers: