At 06.03 hours on 19 Sep 1941, U-74 fired a salvo of four bow and one stern torpedoes at convoy SC-44 about 120 miles east of Cape Farewell and observed two hits on each of two ships. The first vessel sank immediately and the other flashed a lamp signal Help and sank within one minute. However, Allied reports only confirm one hit on HMCS Levis (K 115) (T/Lt C.W. Gilding, RCNR) of the 19th Escort Group, which lost her bow and was abandoned by the crew. She was taken in tow after two hours by HMCS Mayflower (K 191) (LtCdr G. Stephen, RCNR) until the tow parted at 09.00 hours, but it could be reestablished about 90 minutes later. About 19.10 hours, the damaged ship capsized to starboard and sank. 18 ratings were lost. The survivors were picked up by HMCS Mayflower (K 191) and HMCS Agassiz (K 129) (Lt B.D.L. Johnson, RCNR).

The commander T/Lt C.W. Gilding, RCNR was reprimanded for ordering the ship to be abandoned without inspection of the damage, leaving in the first boat and not returning with the reboarding party when the corvette did not sink.