In January, two men allegedly threatened Michel Germani and a female staff member at his central Sydney store, demanding access to the safe.
But police say Mr Germani, 65, actually organised the incident to defraud his insurance company.
He now faces a string of charges including robbery, fraud and deception.
Police have not disclosed what was taken in the raid, but Detective Superintendent Joe Doueihi said Mr Germani had made a claim for a "substantial amount of jewellery of a sizeable dollar amount".
