Michel Elias Germani, 65, initially told police he and a staff member were threatened by two men at his eponymous jewellery store in the Queen Victoria Building in Sydney's CBD earlier this year.
The pair had their feet and hands bound with cable ties before the two men fled the George St store after threatening the employee with a knife and demanding access to a safe shortly after 6.30pm on January 19.
Investigators allege the robbery was a scam orchestrated by the award-winning jeweller to defraud his insurer.
Court documents seen by AAP allege Germani sought AU$2,821,348 (NZD$3.01m) from Barrenjoey Insurance, underwritten by Lloyds of London, allegedly making false statements to do so.
Detective Superintendent Joe Doueihi told reporters a large amount of jewellery of a "sizeable dollar amount" was claimed stolen.
The innocent female staff member, who was injured in the attack, was "absolutely traumatised" and had no knowledge of the hoax, Det Supt Doueihi said.
"She was under the belief that it was a genuine robbery," he said.
Police thought the robbery "just didn't seem right" and investigators concluded Germani "orchestrated the entire event".
The jeweller handed himself in on Monday afternoon.
Germani faces Downing Centre Local Court on Thursday for a bail review.
Two other men aged 37 and 57 were arrested in April and remain before the courts.
Germani gained international recognition designing jewellery for the Saudi royal family, Queen Noor of Jordan, the Duke and Duchess of Wellington, Elizabeth Taylor, and Princess Diana, according to the Germani website.
The eminent jeweller was also awarded the prestigious Diamond De Beers Award and sponsored the Sale of the Century TV show from 1988 to 2001.
Three masked men previously smashed the store's glass displays in 2020.
"They brought the big laundry bag. It's like a huge bag," Germani told Nine News at the time.
