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

A mother and son from Florida have been arrested and charged with money laundering after law enforcement found the pair allegedly set up fake real estate firms and shell companies to process earnings made through prostitution.

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

The duo are accused of laundering money with the proceeds allegedly totaling in the hundreds of thousands of dollars. 

Jelavic and von Lambert were based in South Florida and running 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 realtor as cover to run the escort business.

The business is alleged to have been running for decades having been initially set up in April 2000 with von Lambert hiring 'realtors' who were in reality working 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 a corporation related to Jelavic purchased the commercial building in 2005 when he was just 24.  

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

In the years since, the mother and son allegedly set up shell companies registered with the Florida Division of Corporations in order to 'facilitate the laundering of commercial sex proceeds.'

Von Lambert is alleged to have used her Florida-registered real estate license to facilitate the enterprise and provide an air of legitimacy, the documents state.

But the entire empire came crumbling down after detectives with the Broward County Sheriff's Money Laundering Task Force became suspicious when Jelavic placed multiple ads and classifieds for 'escort services'.

Despite there having been several investigations over the years into Pretty Woman Escorts, none had been successful at disrupting or dismantling the business, nor at finding those responsible for running the seedy enterprise, reports CBS Miami.

Detectives looked back through previous investigations and found individuals allegedly 'engaging in a pattern of racketeering activity' that included prostitution and money laundering through Pretty Woman Escorts and the other businesses.

Police then set up a new investigation which saw them gather additional information from records searches together with evidence from surveillance, traffic stops, subpoenas, recorded phone calls, confidential sources, undercover operations and ever searches in the trash.

After sifting through the garbage, detectives also monitored the comings and goings of every car and person who visited the Pompano Beach property. 

The sex workers were described as being 'young Hispanic and European' women with clients paying $300-$400 for an hour with them. 

'Good things come in tiny packages,' reads one ad on Pretty Woman's website. 'This tiny 5'-foot-2 Colombian is waiting for you.' 

'I am an Asian/ Latina…I take extreme pride in myself and my appearance,' another states. 'I am always impeccably groomed and dress for any occasion.'

'Do you have a desire for a woman who will mesmerize you, allure you, and invite you with her touch, charisma, charm, intelligence, and sensuality?' asks a third. 'I make it my mission to ensure the time we spend together will make you forget about the outside world.' 

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

The business also used drivers who received around $25 for each trip as they traveled to the client's locations between 6pm and 5am.

But the pressure appeared to be mounting and in one incident on July 25, documents detail how a confidential source told detectives that Jelavic allegedly expressed 'deep frustration and stress' to his mother about ongoing issues with the enterprise and suggested they focus more on real estate ventures.

Detectives investigated further and found out through a confidential source how Jelavic told an associate that he had to cancel attending an event that night because of a 'major issue with an employee.'

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

It led to the complete shutdown of his business operations leaving his phone disconnected and business to stop functioning. 

After the incident, Jelavic said that he was 'fed up with the stress' of the business.

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

Documents then detail how Jelavic allegedly met up with his mother again on August 1. 

On that occasion the pair discussed about transferring properties to his own teenage son in order reduce tax liabilities.

The investigation found that Jelavic's bank accounts with Bank of America, Wells Fargo, and JP Morgan Chase had allegedly received about $174,000 through various means including Zelle, credit card transactions and cash deposits.

It's alleged all of the money came from prostitution earnings between June 2023 and June 2024.

The payments were then allegedly drained out of his bank accounts using checks and online transfers to a joint accounts with his mother, von Lambert, documents state.

The descriptions were particularly vague with comments such as 'home remodeling,' 'loan for construction,' 'IPH School, refund travel expenses,' and multiple checks for 'bathroom remodeling.' 

Over the same time period, von Lambert's checking accounts received around $84,000 in deposited checks and Zelle payments that came from the same account.

Von Lambert advertised herself as a 'real estate broker, artist & designer' with her son, Jelavic, purchasing millions of dollars worth of real estate, through her.

'What is noticeable when examining Margareta von Lambert's bank accounts is the lack of financial transactions of real estate activity for an account associated with a real estate business and the lack of financial transactions of art studio activity for an account associated with an art studio business,' according to the affidavit. 

Jelevic's shell companies then allegedly sold a Tamarac property with von Lambert as the realtor involved who helped 'facilitate this money laundering transaction.'

Jelavic and von Lambert had no idea their communications had been intercepted and were being monitored by authorities. Several of their conversations were included in the affidavit. 

In August, Jelavic told his mother of his intentions to buy a home in Croatia, which the affidavit said 'hints at plans to move or hide assets internationally.'

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

'Jelavic discusses further going away to prison and communicates his farewell to [the former escort],' the affidavit reads.

He later called another associate and told him how the police had 'seized all his assets, and that he will be going to prison.'

'Jelavic advises that he was planning on quitting the business, selling the office, and moving on,' the affidavit details. 'Jelavic wanted to tell [the associate] his goodbye's  and that he hopes he survives this.'

Authorities say how earlier this month Jelavic and von Lambert attempted to leave the U.S. for Brazil in order to avoid being prosecuted.

They pulled up to Miami airport just after 3am on September 7th to try and flee the country, according to the documents. 

He bought plane tickets for himself and his wife to two different cities in Brazil, according to the affidavit. 

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

Jelavic and Lambert both face charges of money laundering and deriving support from the proceeds of prostitution. 

The pair will remain in jail until they prove that 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.