Teddy (Nathan Lane) and his son, Theo (James Caverly), make their return to "Only Murders in the Building" in episode four. Teddy is furious with Oliver when they meet in the elevator and violently threatens him, telling his former friend he's going to "f*ck" him. Presumably Teddy was in jail when Bunny was killed, thanks to that whole grave-robbing, black-market jewellery ring. But it was possible he hired someone to do the killing and frame Mabel, Oliver, and Charles.
We also learn in episode nine that he's the biological father of Oliver's son, Will (Ryan Broussard), but that was unrelated to Bunny's death. Teddy, ultimately, is innocent of this crime.
Our verdict: Not guilty