Judge Edwards made a reparation order of $6000 after taking into account the offender's personal circumstances. She said she did not feel Mr Gray had shown genuine remorse but could only seek an amount suitable to his circumstances.
The summary of facts states Mr Gray sold one of the pups to an associate for $200. Mr Gray claims there were only two puppies but a witness who viewed the dogs described three.
On August 8 last year police visited Mr Gray's address where he admitted he had been in possession of Essie and her three pups.
He claimed one pup had died at birth, however he was no longer in possession of any of the pups.
Police executed a search warrant on November 19 and located Essie and a male puppy.
Microchip scans confirmed the two dogs were the property of the victims.
Mr Gray took part in a restorative justice meeting but defence lawyer Tony Parsons said this was unsuccessful in many ways. He said Mr Gray had wanted to reassure the victim the dogs were well taken care of in his care.
But the breeder said Essie was found "mangey, skinny and tied outside with chain so big around her neck she couldn't lift her head". She also said the male pup had received little socialisation and developed behavioural issues resulting from mistreatment.
Judge Edwards said Mr Gray's comments regarding his inability to pay reparation did not show genuine remorse.
She remitted his current fines so he could make payments to the victims immediately.
The victims involved placed multiple advertisements and offered a reward for the return of Essie.
Her breeder says she was sent ransom demands and threats via text messaging and had someone attempt to break in to her property.
Outside court she said the reparation order "would never be enough" to cover the financial and emotional stress they had undergone.
