"He wasn't aware that his riding with his mates affected his chances of rehabilitation," Mr Forsaith said.
He argued the former Tasmanian Rebels president and Launceston chapter boss should have been given a right of reply.
More information from Picard could have changed the outcome of his appeal, Mr Forsaith said.
"It might have been that the mates are part of branches that there are no criminal links."
Picard plans to ride Harley Davidson motorcycles with his Rebels "mates" once he is released because he doesn't have friends outside the club.
He is still in regular contact with Rebels members through telephone calls and prison visits, the court heard.
Picard arrived from New Zealand in 1980. He was a Rebels member for 27 years and their president for more than a decade.
Counsel assisting the Commonwealth, Graeme Hill, said the department did not need to specifically ask Picard about his affiliation with the Rebels.
Justice Richard Tracey has reserved his judgment but will hand down his decision before Christmas.
- AAP