NJ transit is an at will employer so he can be fired without cause. I have been unable to find the specific code of ethics so I can't opine whether he violated it.
I also don't know the legality of burning something on the streets of NYC, so he may have violated some city ordinance.
I am sure this will all come out in the lawsuit. Suing your employer seems to be the lottery of choice for getting rich quick, it seems.