300/440/550 Js550 just stopped

My 1987 JS550 just stopped. My son had been riding on a private pond that is clear, and as he was turning it lost power and died and we have been unable to get it to start. I have returned home and set it up in the garage and started working. Before the machine died it was making a ringing sound, like something was ringing. I removed the fly wheel cover (because I was concerned the fly wheel had spun) and I tried turning it over by hand. It does turn over. However, when I turn it over with out the plugs in it, it gets hard to turn in the same place. I am able to get it to turn past (by hand) but it gets tight and hard to turn in the same place. Any ideas or direction would be greatly appreciated.
 
Definitely sounds like an internal issue. As mentioned, start by pulling the head and see what the tops of the pistons look like as well as the cylinder walls by turning the engine over by hand. Post up some photos as well. When was the last rebuild?
 
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