Mom and son arrested in Pretty Woman prostitution empire used clever ploy to wash hundreds of thousands of dollars

A Florida mother and son have been arrested and charged with money laundering after police discovered the pair allegedly set up fake real estate companies and shell companies to handle profits from prostitution.

Christopher Jelavic, 48, and his 70-year-old mother Margareta von Lambert were arrested within a day of each other on September 11 and 12 respectively.

The duo is accused of money laundering, with proceeds reportedly running into hundreds of thousands of dollars.

Jelavic and von Lambert were based in South Florida and ran a Pompano Beach business called Pretty Woman Escorts as a “criminal enterprise engaged in commercial sex,” but they used Von Lambert’s job as a real estate agent as a front to run the escort business.

Von Lambert is said to have run the prostitution empire along with her son, Christopher Jelavic, 48

The company is said to have been in business for decades and was initially founded in April 2000, with Von Lambert hiring “brokers” who actually worked as prostitutes – but many even had valid real estate licenses.

Detectives identified a bland building on the corner of North Dixie Highway as the center of the operation, with county records showing that a company related to Jelavic bought the commercial building in 2005 when he was just 24.

According to the affidavit, the company was hidden behind a front company known as Boca Art Studios.

In the years that followed, the mother and son allegedly formed shell companies registered with the Florida Division of Corporations to “facilitate the laundering of commercial sex proceeds.”

Von Lambert allegedly used her Florida registered real estate license to facilitate the venture and create an atmosphere of legitimacy, the documents say.

But the entire empire collapsed after detectives from the Broward County Sheriff’s Money Laundering Task Force became suspicious when Jelavic posted multiple ads and advertisements for “escort services.”

Although several investigations into Pretty Woman Escorts have been conducted over the years, none have been successful in disrupting or dismantling the company, nor in finding those responsible for running the shady business, reports CBS Miami.

The pair are accused of running Pretty Women Escorts, a prostitution website (pictured), but all under the guise of a real estate agency.

Margareta von Lambert, pictured, had legitimately set herself up as a real estate agent, but investigators believe the listed properties were a front to launder money from prostitution.

Detectives looked back on previous investigations and found individuals allegedly “engaged in a pattern of racketeering activity,” including prostitution and money laundering through Pretty Woman Escorts and the other companies.

Police then mounted a new investigation, gathering additional information from document searches, along with evidence from surveillance, traffic stops, subpoenas, recorded telephone conversations, confidential sources, undercover operations, and always trash searches.

After sifting through the trash, detectives also monitored the comings and goings of every car and person visiting the Pompano Beach property.

The sex workers were described as “young Spanish and European” women, with clients paying between $300 and $400 for an hour.

“Good things come in small packages,” reads an ad on Pretty Woman’s website. “This little 6-foot Colombian is waiting for you.”

“I’m Asian/Latina…I’m extremely proud of myself and my appearance,” said another. ‘I am always impeccably groomed and dress for every occasion.’

“Do you desire a woman who will enchant, seduce and invite you with her touch, charisma, charm, intelligence and sensuality?” asks a third. ‘My mission is to ensure that the time we spend together makes you forget the outside world.’

Broward Sheriff’s Office Detective Jairo Barrera explained how the sex workers earned a 55 percent share, while Jelavic’s cut was set at 45 percent.

The company also used drivers who traveled to customer locations between 6 p.m. and 5 a.m., receiving approximately $25 per trip.

Detectives identified the corner building at 3311 North Dixie Highway as the center of the operation. County records show a company related to Jelavic bought the commercial building in 2005 when he was just 24.

Authorities say Jelavic and Von Lambert, pictured, at one point tried to leave the U.S. for Brazil to avoid prosecution, the documents show.

But pressure appeared to be mounting and one incident on July 25 details how a confidential source told investigators that Jelavic had allegedly expressed “deep frustration and stress” to his mother over ongoing problems with the company and suggested she would concentrate more on real estate. companies.

Detectives investigated further and learned through a confidential source how Jelavic told an employee he had to cancel attending an event that evening due to a “major issue with an employee.”

According to the documents as seen by Local10 which spans more than 100 pages, Jelavic explained how a woman he trained for a month accidentally sent a mass text message to all his clients.

It led to the complete shutdown of his business operations, causing his phone to be disconnected and the company to cease functioning.

After the incident, Jelavic said he was tired of “the stress” of the company.

One of his associates then suggested that he should focus on real estate instead.

Documents then describe how Jelavic allegedly met his mother again on August 1.

On that occasion, the couple discussed transferring property to his own teenage son to reduce tax liabilities.

The investigation revealed that Jelavic’s bank accounts at Bank of America, Wells Fargo and JP Morgan Chase allegedly received approximately $174,000 through various means, including Zelle, credit card transactions and cash deposits.

It is alleged that all the money between June 2023 and June 2024 came from prostitution income.

The payments were then allegedly withdrawn from his bank accounts using checks and online transfers to a joint account owned by his mother, von Lambert, the documents state.

The descriptions were extremely vague with comments such as “house renovation,” “construction loan,” “IPH school, travel allowance,” and multiple checks for “bathroom renovation.”

During the same period, Von Lambert’s checking accounts received approximately $84,000 in deposited checks and Zelle payments coming from the same account.

Von Lambert advertised herself as a “real estate agent, artist and designer” with her son Jelavic, who bought millions of dollars worth of real estate through her.

“What is striking when examining Margareta von Lambert’s bank accounts is the lack of financial transactions from real estate activities for an account associated with a real estate company and the lack of financial transactions from art studio activities for an account associated with an art studio company. ‘, the statement said.

Jelevic’s shell companies then allegedly sold a Tamarac property with Von Lambert as the broker involved who helped “facilitate this money laundering transaction.”

Jelavic and von Lambert had no idea their communications had been intercepted and tracked by authorities. Some of their conversations are included in the affidavit.

In August, Jelavic told his mother of his intentions to buy a house in Croatia, which, according to the affidavit, “refers to plans to move or hide assets internationally.”

Weeks later, Jelavic was heard speaking to a former Pretty Woman escort and telling her “he is going to prison for money laundering, organized crime and other serious crimes,” according to the affidavit.

‘Jelavic discusses his further departure to prison and says goodbye to him [the former escort]’, the statement reads.

He later called another employee and told him how the police had “confiscated all his belongings and he was going to jail.”

“Jelavic advised that he intended to leave the company, sell the office and move on,” the affidavit states. ‘Jelavic wanted to tell me [the associate] his farewell and that he hopes he survives this.’

Authorities say Jelavic and von Lambert tried to leave the U.S. for Brazil earlier this month to avoid prosecution.

According to the documents, they stopped at the Miami airport just after 3 a.m. on September 7 to try to flee the country.

According to the affidavit, he purchased plane tickets for himself and his wife to two different cities in Brazil.

Hours later, Jelavic’s wife and his mother arrived at the airport to join him.

Jelavic and Lambert are both accused of money laundering and obtaining support from the proceeds of prostitution.

The couple will remain in jail until they prove the source of their bail has nothing to do with the alleged crimes.

If correctional deputies release them on bond, they will not be allowed to travel outside Broward or Palm Beach counties.