A New Jersey Transit conductor was operating a ticket scheme in Penn Station, authorities say.
Officials say 46-year-old Joseph Abate allegedly sold $5,000 worth of unused train tickets to a newsstand vendor inside the station, who would offer them to customers at cut-rate prices.
An informant turned the tickets over to police.
Abate is charged in Manhattan with two counts each of grand larceny and possession of stolen property.
It's not clear if he has a lawyer.
NJ Transit spokeswoman Nancy Snyder tells The Star-Ledger of Newark such acts financially penalize customers who legally purchase their tickets.