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Mealy bugs are usually on the underside. It's hard to tell from the picture, but these spots don't look like the mealy bugs I have seen.
As to what they ARE, I don't know.
I spoke with my husband about the possibility of gramoxzone damage, as he works for Syngenta, the company that manufactures/packages Gramoxzone. He said it works as a defoliant and could very probably cause the damage you see. He was not hopeful for the survival of the plants. Gramoxzone is paraquat and works fairly quickly. You can remove the damaged leaves and wash the plant down with water very well, but it may not save the plant. He suggested you speak with your neighbor as it would seem he is being reckless with a really dangerous substance...
