I am being investigated for fraud under $5000 and the insurance company has not been nice. I made a stupid mistake and I just want to pay everything back. They are taking their time (the insurance company) on making a decision. I have not been charged with anything at this time and when I ask if that is a possibility, all they say is "i don't know" we will advise you by email when we make a decision.
In addition, because I was so terrified when I found out they had audited me, I lied and said that some of the claims were made by my godchild whithout my knowledge. I am pretty sure they don't believe me. I just want to pay it all back anyway so will they charge me if I pay it all back? They just won't give me a difinitive answer.

Also, what terrifies me the most is that I am afraid police will come to my home or place of work and arrest me. Can this happen?

Could it happen? Sure. Will it? VERY doubtful. You may be served with a warrant, but they will very likely not arrest you. They may call you and tell you to come in.

Will they press charges? Hard to say. Probably, if they aren't giving you a definitive answer. They might be being intentionally vague hoping you pay it back and then pressing charges. There is really no way to know. The one thing you can be certain of is that you will have to pay them back one way or another so its in your best interest to do so now in hopes that they are satisfied.

Send them an apology and offer to pay it back