"Mandatory reporters" are those folks who must report to the police any child abuse or neglect, people who they consider to be a possible threat to themselves or others, and people who are intent on breaking the law in a criminally violent or dangerous manner. They include therapists other than psychiatrists, teachers, medical professionals, ministers, and a few others. It is a judgement call and if she stated that she didn't think he was dangerous to himself or others but reported it anyway.... she was going beyond the scope of her responsibility. As a "mandatory reporter" I have had to make a few of those calls - I hate doing it because if my judgement is wrong then I just screwed someone's life up for a long time. The times I have called there has been no doubt - no judgement call necessary but it could happen.
The police in this case (if I accept the story as it is posted) flat broke the law! They did more than overstep their authority they reacted to a non-issue, long after the fact, with egregious prejudice. Then to cover their tracks and in an obvious attempt to justify their first wrong move they essentially kidnapped this man and tried to get what they needed to have him committed by threat of force. This sounds like it is a department wide problem that starts at the top and permeates the entire force.
I hope he ends up owning that town - then he can be the one to fire them all and recruit a new department.