[1] Byrne was forced to step down from cabinet in 2006 after it was revealed that he and several other legislators had exceeded their constituency allowance claims, which led to a criminal investigation.
As a Progressive Conservative Member of the House of Assembly, he served in several shadow portfolios including Post-secondary Education, Employment and Labour Relations, Environment, and Industry, Trade and Technology; and as Chair of the Public Accounts Committee.
On June 21, 2006, Williams announced that he had requested Byrne's resignation as a result of an audit of the financial records of the House of Assembly by the Auditor General of the province.
Byrne was forced to step down after the Auditor General expressed concern to the Speaker of the House of Assembly over financial issues.
[3] As the scandal involved all political parties, the Conservatives did not suffer a backlash in the 2007 election and actually increased their share of the popular vote and seat count.
Byrne, three other Newfoundland politicians and a senior civil servant in the House of Assembly were subsequently indicted under the Criminal Code of Canada, on fraud-related offenses.
[7] In his sentencing decision, the Judge noted that "The most aggravating factor to be considered is that this fraud and bribery was committed by someone who was in a high position of public trust.
When officials enrich themselves or others in circumstances such as this, there is an undermining of the confidence in the democratic system ... Byrne used his position to carry out these fraudulent and corrupt activities."
The judge nonetheless largely agreed with the prosecution's request for two years imprisonment, citing the need to send a message of deterrence given the serious nature of Byrne's fraud.