Even if the stream isn't a protected stream from a trout standpoint, he was still obligated to stay within confines of the Clean Water Act. So if there was a visible contrast in water color from above where he was working to below, he could have been fined for a water quality violation. Also depending on how much gravel was removed he might have needed a mining permit from the DEC. On the federal side of stream work, is the Army Corps of Engineers, who actually have more jurisdiction over streams and waterways than DEC. He definitely would have needed a permit through the Corps (Buffalo District), and depending on if he did apply for one, if he followed the plans, or didn't stay within the specifications in the permit, he could be in violation with them as well. It may be worth contacting the Buffalo District for the Corps on this matter. They can have him restore the section.
There are other means of restoring and stabilizing the section using logs, vegetation and carefully placed stones so all is not lost yet. Most streams in central NY have become out of balance with the large storm events the last few years. Hope this helps and makes sense, I do a bit of stream work myself.