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Termination after Complaining about Illegal Activity

I was recently terminated from my job as a waitress for having an "outburst" against a manager. The manager illegally rang up a carryout order under my employee number without my permission. She did so because the order was for bottles of wine, and it is against the law to sell alcohol to a takeout customer, especially in the quantity she sold. When I spoke to another manager about this transaction, the manager who engaged in the illegal activity swore and yelled at me. There are several witnesses to our exchange, and all have written statements saying I never cursed or raised my voice, and the exchange was nowhere near customers.
The very next day I was terminated by the manager in question for the alleged "outburst" against her.
I filed a complaint with my district manager, and he told me that he could not allow me to come back to the location I previously worked at, because of the manager who fired me, but I could be transferred to a different location. I feel this is to avoid any legal actions, and to prevent me from filing for unemployment.
Is this legal? What are my options?

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As an at-will employee (someone who does not have a contract) you still have rights under federal and Massachusetts law.  Some of these rights may be contained in your employee handbook, where procedures may be outlined for dealing with the type of situation you describe.  Additionally, the at-will employment doctrine (an at-will employee may be fired for any legal and non-discriminatory reason) is riddled with exceptions, some codified in statutes and others in case law.  For example, an employee cannot be fired for reporting illegal activity or for refusing to engage in illegal activity.  This is known as a public policy exception to the at-will rule. 

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