Continuity mistake: When Catherine walks up the stairs, Horatio Caine aims his gun upwards. In the next shot he has his arms down. (00:36:10)
Continuity mistake: In this episode, Catherine is sent to Miami on a lead of a missing child. There they find a car in a swamp, and when the pull the car out and open the door, a female body falls halfway out. When this happens you can see the woman playing the victim breathing. You see her stomach moving up and down.
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.