SALEM – A Superior Court judge has found a Nahant man, who was convicted in an insurance fraud scheme 13 years ago and still owes the state nearly $34,000, in violation of his probationary terms.Edwin L. Gaeta, 69, of 8 Harbor View Road, Nahant, was ordered to pay $80,000 in restitution for his role in an insurance fraud case in 1998 in which he and another man, William Carr, now 64, formerly of Lawrence, staged the theft of a bus in order to collect about $120,000 in insurance moneyThe bus was later located in Vermont when an unwary buyer detected inconsistencies with its vehicle identification number.The restitution was part of the probationary negotiations after he served a House of Corrections stint on the matter, which at the time overlapped a federal sentence he was already serving on drug, loan-sharking and weapon charges.Since his release from custody, Gaeta has constantly been before Judge Howard J. Whitehead explaining he financial situation, but declining to produce evidence of his income.Friday afternoon, Whitehead determined he was in violation after Probation Officer Sonia Archer reported that since 2008 Gaeta has failed to pay the $400 a month ordered and has slacked off even more since May.Defense lawyer Russell Sobelman offered stacks of medical reports explaining his client?s medical situation.Archer suggested that she thought 30 months in jail would be appropriate.Whitehead gave Gaeta until Sept. 22 to either come up with the full $33,895 owed in restitution or he would impose a sentence either in state prison or jail, or if he comes up with some money he would consider extending his probation again.In the meantime, Gaeta remains free.