Dylan John Parkinson's boss put the crime down to an "unfortunate brain snap", Newcastle Local Court was told.

Parkinson, 21, of Sturdee Street, New Lambton, was sentenced yesterday for making a false representation resulting in a police investigation.

Police were called to Eagle Boys at Adamstown on July 20 over an armed robbery, the court heard.

Parkinson told them he had gone to units in Fowler Street, Hamilton South, to deliver two pizzas and a garlic bread when a male armed with a knife approached and threatened him. He said he handed over a work bag containing $380 cash, as well as the pizzas and bread, and the man ran off.

Further investigation by Newcastle detectives revealed that Parkinson and his brother, Calyn William Parkinson, 18, had set up the offence and on August 1, both men readily admitted their deception to police.

They had since repaid the money and apologised.

Pizza shop owner Craig Miller wanted no further action.

"What is quite remarkable about this case is that [Mr Miller] thought so highly of [Dylan Parkinson] that he immediately forgave him and allowed him to continue his employment," magistrate Elaine Truscott said.

In a character reference to the court, Mr Miller said Parkinson was a "senior and respected" member of staff.

"I respectfully submit as the victim in this unfortunate incident . . . [that] the punishment of guilt and collapse of his credibility amongst his peers has been punishment in itself," the reference said.

Ms Truscott dismissed the charge without recording a conviction after Parkinson completed community work. His brother will be sentenced on December 12.