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I don't think that Ted Sandyman, or any other Hobbit, faced any legal sanctions as a result of the occupation of The Shire. It would be difficult to decide who had co-operated willingly with Saruman's men and who had been coerced.
In my mind I can see The Thain, The Master and the Mayor making a joint statement granting a general amnesty for all offences committed during the occupation, giving everyone a fresh start.
As for Ted Sandyman, he would remain the same obnoxious Hobbit he always was. He would probably loose the tenancy of the mill and have to take a labourer's job, although he may have been the only one with the knowledge and skill to rebuild the mill after the new one was demolished. Either way, he would spend his evenings boring everyone in the Green Dragon, complaining how unfair life had become and declaring that it had been better when Sharky was in control.
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