Short answer is if he doesn't do anything to restrict or block drainage he is probably ok. If he does something to cause water levels to increase (get deeper) on his neighbors or causes any new land to flood or even causes already flooded land to be inundated for a longer duration then he is probably not ok.
Longer answer is if he is filling a wetland, he may be in a heap of trouble for different reasons.
Bottom line is that everyone better think long and hard before getting any government agency involved because the outcome may not be to anyone's liking. It could get into each side hiring lawyers and engineering firms and could turn expensive quickly. It could also cause the entire area to be deemed a wetland with nobody being able to do much of anything on their own property.
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