Blood Moon - S11-E3
Continuity mistake: When Nick is talking to Catherine about what happened at the night of the murder he folds his arms. In the next show they are unfolded. Although you can't see his arms entirely, it becomes clear from the position of his shoulders and the wrinkle in the middle of his shirt that instantly disappears.
Answer: He doesn't have the authority to arrest him - when anyone is arrested in the show, a police officer does it. Also he tells Ty that he is going to be submitting his case findings to Ty's insurance company, who would no doubt contact the IRS, who then would have him arrested for fraud etc.