Hi, BFL. I agree with the above. There are three issues here. First, 3.5 gallon is barely adequate for a betta alone; it is definitely too small for a betta with other fish. That's where the aggression is coming from. Second, bettas, especially male bettas, are naturally solitary and best kept alone. If you want a tankmate for him, I suggest a few snails or amano shrimp, as bettas often don't recognize these as a threat. Betta personalities vary widely, and you'll hear from many people who have successfully kept them with fishy tank mates...for a while. But anytime you do so, you're taking a chance that, sooner or later, aggression will happen. Third, neons are a schooling fish, and they need to be in groups of at least five or six (ten is better) to feel safe and comfortable.
So, unless you want your neons hounded to death, you'll have to rehome them. A fifteen to twenty gallon tank, if set up well, should be adequate for a nice school of them. You'll notice the difference in their colors and behavior. If that isn't an option, see if your pet store or a nearby fish keeper can take them, and just keep the betta.
Good luck!