Tested this, and it should work:
$body = str_replace ("\r", "<br>", $body);
$body = str_replace ("\">", "\"><font color=\"WHITE\">", $body);
It's a good practice to enclose any string in double quotes, especially if they can contain spaces. You were starting with single quotes, and had multiple double quotes inside them. I just put double quotes on the outside, and used the \" escape for the ones within, and it appears to work just fine.