Figure out another place to live, as in another city, and get a place there. Pack or even move if you can.
Then, as others have said, tell the truth. Sit her down and tell her that you are stupid, a weasel, and barely a man for letting things go this far. And that she is far better off without you. The truth.
Then go start your new life and let her deal with the wreckage you have left behind. Hopefully, she is a better person than you and moves on quickly and doesn't call in any favors from the family "friends.". And, for your sake and any women in your future, hopefully you will learn how to be a man and not let relationships with people you either don't care for or respect, or those with mob ties, get out of hand.
Sorry if any of that sounds harsh, but you seem to want us to help you come up with some magic excuse to help you weasel yourself out of a situation of your own making. These boards are for people who want to better their interactions with women by being the best men that they can be. Yes, there is lots of advice for "gaming" women because, due to the piles of BS that women create as well as the little hoops we often have to jump thru just to deal with them, some gaming is often required. But make no mistake, unlike other PUA communities, this DJ community is about success with women via success as A MAN, not BS and trickery and, from what I can tell by this thread, YOU have been the little b1tch, in this case. And I find it more than a bit insulting to this community that you think we are here to help you come up with an exit strategy from a situation of your own creation, because you didn't gave the balls to stop it at a reasonable point. Weasels like you are what feed the arguments of the feminist trolls who call those of us who simply want to be men in a woman's world pigs.
Man up. The truth will set you free. There is no winning in this, just degrees of losing. Tell the truth, take your beating, and move on. Learn from this.