At 05.00 hours on 13 March 1942, U-332 spotted the unescorted and unarmed four-masted schooner Albert F. Paul (Master William Mack Martino) about 160 miles north-northeast of Cape Hatteras. Liebe considered using his deck gun to sink the ship, but the heavy seas prevented this. At 07.14 hours, a first torpedo passed under the bowsprit, but six minutes later a second torpedo struck under the third mast and sank the schooner immediately. There were no survivors, the master and seven crew members were lost.