Scores of retired teachers were allegedly duped into investing millions of their pension funds into a fraudulent Ponzi scheme.

A 51-year-old former primary school principal cashed in his R1-million pension and put it into the scheme that has now gone bust. It was run from the Old JSE building in Johannesburg.

The former principal is one of at least 18 victims. According to an affidavit deposed with the police, he said he was introduced to the scheme by a former colleague and was promised a 50% return after three months of investment.

The man said he deposited R1-million in February 2015 and was told that he would receive R350000 interest after three months.

"I was told that after getting my 50% share my R1-million investment will be fully paid back. I did get my R350000 but that was the end of it. The investor sent me from pillar to post when I demanded my money back."

He said he then approached the South African Revenue Service to probe the matter.

According to the Hawks, a high-flying Johannesburg couple was arrested last week for allegedly operating a Ponzi scheme mostly targeting teachers from 2011 until 2014.

The Hawks are investigating a case of fraud involving R45-million.

A 61-year-old teacher said she invested R250000 in 2015 and never received a cent. A Soweto funeral parlour owner lost R2.5-million.

According to investigators, the couple behind the scheme, aged 30 and 31, have been living the high life. "They own three vehicles - a Chrysler 300c, a BWM3-series and a Mazda 5 - and have been staying in an expensive estate in Durban," said a source.

The spokeswoman for the Hawks in Gauteng, Captain Ndivhuwo Mulamu, confirmed that the suspects were targeting retired teachers.

"The husband handed himself in, accompanied by his attorney, after the arrest of the wife. They appeared on Monday in the Johannesburg Specialised Commercial Crimes Court and they were remanded in custody until their next appearance for a formal bail application," she said.