A retired New York City police officer was accused on Tuesday of running a multimillion-dollar online escort service that catered to clients at their homes and at major Manhattan hotels, arranging assignations that cost as much as $20,000 a night.

The former officer, Michael Rizzi, was charged with money laundering in connection with managing his service, BJM/Manhattan Stakes and Entertainment, since 2012, which he advertised through nearly 60 websites with names like Lush Playmates and Elite Club NYC. Prosecutors said that BJM promoted prostitution. After personally interviewing candidates, Mr. Rizzi, 44, of Brooklyn, would send them out on jobs with wealthy customers, one of whom requested an escort named Jade to accompany him on a private jet for a five-day trip to a secluded resort in Jamaica, according to a federal complaint.

Speaking to reporters outside Federal District Court in Brooklyn, Javier Solano, Mr. Rizzi’s lawyer, said his client ran a legitimate business that provided companionship — and only companionship. “There was no sex involved,” Mr. Solano said, adding that Mr. Rizzi had in fact fired some women after he discovered that they had engaged in illegal activity with clients.

According to telephone and real-estate records, Mr. Rizzi is married to Jill Juliano, whose father, Richard Juliano, a soldier in the Gambino crime family, pleaded guilty to illegal gambling charges in 2003. Mr. Rizzi joined the Police Department in 1991 and retired with a pension in 2000 after suffering a line-of-duty injury, Mr. Solano said.