Daniel Edmund Duggan, an Australian father of six and former US citizen, was arrested at a supermarket car park in central-west NSW in October 2022 after a request from US authorities.
If extradited, he will face court on charges of violating and conspiring to violate arms control laws, conspiring to defraud the US government and money laundering.
In 2011 or 2012, he allegedly received either $116,000 or $166,000 for his role in a conspiracy to train Chinese pilots at a South African flight school.
Duggan, who denies the charges and is fighting his extradition, made an application in the NSW Supreme Court to set aside a restraining order barring him from selling a property at Saddleback Mountain, on the state's south coast.
At a hearing earlier this month, his lawyers argued the order should be discharged because of two errors in its details that mistakenly put Duggan as director of the firm Power Art Trading and misspelled the name of the company.
The company belongs to Duggan's wife, Saffrine, and is the owner of the Saddleback Mountain property.
On Wednesday, Justice Nicholas Chen dismissed Duggan's application.
The judge found the errors, which were admitted to by the Australian Federal Police, were at most of "peripheral evidential relevance".
"It is, in my respectful view, not open to characterise that matter as material in any sense," he wrote.
The misstatements were neither deliberate nor intentional but were rather the "product of innocent inadvertence and inattention to detail", Justice Chen said.
Saffrine Duggan had listed the acreage for sale to raise funds for her husband's legal bills.
She purchased the seven-bedroom homestead in 2014 for $1.15 million.
Duggan's family and lawyers have said the former pilot is being held in solitary confinement with brief periods of reprieve.
If convicted in the US, he faces up to 60 years in prison. Australia does not have equivalent laws.
