Two Southwest Ranches residents are facing federal charges in a massive $31 million health care fraud scheme targeting TRICARE and the Federal Employees Health Benefit Program (FEHBP). Serge Francois, 51, and Patrick Tonge, 40, were indicted on counts of health care fraud, payment of kickbacks, money laundering, and obstruction of justice, marking one of the largest compounded medication scams uncovered in South Florida.
Francois, owner of Vital RX d/b/A Atlantic Pharmacy, allegedly used false certifications to gain access to TRICARE billing, submitting approximately $37,263,519 in fraudulent claims. The pharmacy received $31,034,919 in payouts from the government programs for compounded medications that were neither medically necessary nor properly prescribed. Tonge, an employee at Atlantic and CEO of EL& MORE CONSULTING LLC, funneled funds through his company as part of the scheme.
Investigators allege the pair conspired to pay kickbacks to patient recruiters who steered TRICARE beneficiaries to Atlantic Pharmacy, violating anti-kickback statutes. The operation relied on sham prescriptions and ghost doctors to justify the costly compound drugs, which were often never needed. Federal agents say the fraud spanned multiple states and involved coordinated billing through third-party intermediaries.
As part of the money laundering charges, both men are accused of conducting financial transactions over $10,000 using proceeds from the fraud. Investigators traced illicit funds to luxury purchases and shell companies, with the indictment seeking criminal forfeiture of multiple high-end assets—including a Rolls Royce, Ferrari, Lamborghini, Land Rover, Cadillac Escalade, and a Mercedes Benz van—along with several bank accounts and real properties.
The case was announced by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, alongside federal agents from DCIS, USPS-OIG, OPM-OIG, U.S. Army CID’s Major Procurement Fraud Unit, and FDA-OCI. Ferrer praised the multi-agency probe that dismantled the operation, calling it a textbook example of systemic abuse of military and federal health benefits.
The charges are merely accusations; Francois and Tonge are presumed innocent until proven guilty. Assistant U.S. Attorneys Daniel Bernstein and Evelyn B. Sheehan are prosecuting the case. Court documents are available via the Southern District of Florida’s public docket at www.flsd.uscourts.gov or pacer.flsd.uscourts.gov.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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