Margaret Paterson, who was dubbed 'Madam Moneybags' was jailed for five years in 2013 after making a fortune from prostitution.
She was convicted for brothel-keeping, money laundering and living on the earnings of prostitution.
Paterson’s affluent lifestyle had come to an end after police raided business and brothel premises in Grosvenor Street in Edinburgh’s West End in September 2011.
Officers found sex toys, 100 boxes of unused designer shoes, a seven feet pile of about 400 designer handbags and evidence of a spending spree in some of the capital’s most exclusive shops.
The Daily Record reports she passed away aged 66 at the St. Columba’s Hospice in Edinburgh.