David Johnston, 41, managed to hide the cash for 10 years.
He claimed his boss at Aberdeen-based oil and gas firm Capelrig Ltd, managing director Brian Hill, authorised the transactions.
He says he used the money to fund and book numerous luxury holidays around the world for Mr Hill and his wife Mrs Hill – the firm's general manager.
Peterhead Sheriff Court heard Johnston started working with the firm in 1998. When it was going to be sold in early 2008, he resigned .
Mr and Mrs Hill deny being involved.
The hearing continues.