Former Versailles finance director Frederick Clough bought his assistant a Saab convertible with the company's money, after she "fell in love with it in a garage forecourt", a jury heard.
He also siphoned tens of thousands of pounds into offshore and US bank accounts for accounts controller Lorraine Jones and provided her with hundreds of pounds of holiday spending money.
The admissions came as Mr Clough, the principal defence witness, finished giving evidence. The trial is expected to last a further six months.
Mr Clough has pleaded guilty to conspiring to defraud the collapsed trade finance group, which provided loans to small companies on the basis of their forthcoming orders rather than their credit ratings, of Ј19m last July. Carl Cushnie, founder, chairman and chief executive of the group, and Ms Jones deny the charge.
Anthony Evans, QC, prosecuting, asked Mr Clough how he came to buy Ms Jones the Ј18,000 vehicle.
