Is it dangerous if I consume Teflon flakes in frying pan?

I have a frying pan from which the Teflon coating is beginning to flake off. Last night I was cooking a dish involving a white sauce when I noticed what could only have been flakes of Teflon in the sauce. I threw the meal out, as I had a roommate tell me one time that Teflon is poisonous; but flaky Teflon frying pans seem pretty common. I couldn't find anything on the web to say that Teflon was bad for you in that form. Are there any health risks that go with eating from pans where the Teflon is coming off?