[Zhang Fei]

After giving the officers the wallet, he was frisked, made to put his hands against the wall and hand over his identification so they could do a criminal history check.

This is the relevant section. If the guy has an outstanding warrant, they book him. If he doesn't, and is an occasional criminal, he now knows that the cops are keeping an eye out for people like him. If he's innocent, he gets a few looks from other passengers, nothing more. The fact is that he could have turned this in at a token booth, which is a two minute walk away from most subway platforms.

[Dan Evans]

The fact is that he could have turned this in at a token booth, which is a two minute walk away from most subway platforms.

I wouldn't trust a token booth clerk to be honest.

People should be free to do the right thing.

[Mr Rogers]

If it were me, I’d take it...and then try to identify the owner by the contents. I doubt I’d turn one in to a ticket booth. I know I’m honest, but I know nothing about the person in the booth.

[Wolfie]

They are arresting and CHARGING people, criminal background or not:

Police Sting Operation Lucky Bag Has Some Calling Entrapment

I guess the lesson for New Yorkers is to just ignore unattended bags on the subway. Which is a very stupid thing to teach people in this day and age.