Michael probably was suspected by both law enforcement and the underworld. Remember that at the Senate hearing Michael was asked if he orchestrated the Dons' murders.
Yes, I'm sure they did. He had an airtight alibi, though, and I doubt the police would have been able to even question him.
On the other hand, Connie suspected him.
Ntra la porta tua lu sangu � sparsu, E nun me mporta si ce muoru accisu... E s'iddu muoru e vaju mparadisu Si nun ce truovo a ttia, mancu ce trasu.