Is what I did illegal, and if not, how should I deal with this situation?

Of course it was illegal. A five year old can understand that stealing is wrong. Stop playing dumb - nobody in their right minds will believe that you don't know that it's unacceptable to steal money while on the job.

Also: What you did was not fraud. It was theft.

Can he say he fired me for "fraud" on my employment record?

What employment record are you talking about?? Do you really believe there's a document out there that keeps track of the jobs that you've worked? Or are you trying to go on EI and worrying about how this will affect your appliation..?

How will it affect my future employment?

If you're dumb enough to put this job on your resume, it will probably tank any hopes of you getting another shitty minimum wage job. But you're not going to do that, because you aren't going to want your prospective employers to call your former boss and learn that you steal from your employer.

Was he violating Employment Standards by withholding your tips? Yes, almost certainly.

However, our legal system does not entitle you to put on a cape and pretend to be Robin Hood to try to get that money back. If you had a problem with it, you should have followed the proper channels.

You may take action against your former employer. Your former employer may take action against you, but almost certainly will not (beyond terminating you, which they have already done). These two procedures are not handled together.