Although I'm not a cop or any other official (currently not speaking in an official capacity) I can say with assurance that if you tried to go above the 1000' plateaus that you mention, you'd lose visual sight of the drone and the flight would...
Did your neighbor use RID to locate you? Can you point to instances where someone has used RID to do anything negative to a drone or a drone operator?
It certain could happen but there just don't seem to be very many cases of it actually happening.