While en route to Alexandria in convoy OB-261 on Dec. 30, 1940 captain Aubrey D. Davies of the British India cargo ship Nalgora sent a radio signal that she was being shadowed by a "mysterious ship." Sometime after this Davies sent a second signal canceling the first call. Three days later however, on January 2, 1941, Nalgora was in real distress when Korvettenkapitän Hans-Gerrit von Stockhausen in U-65 torpedoed the ship without warning. He fired a single torpedo from a stern tube stopping the ship and finished her off with his deck gun.

All 105 people on board abandoned the ship, but rescue for them took some time. Most were picked up a week later, but one lifeboat was not found at that time. This boat reached the Cape Verde Islands on Jan. 13. This was the last ship sunk by Stockhausen, making his toll an even dozen, it was also the last ship sunk by U-65. After returning to Lorient on Jan. 10, Stockhausen was awarded the Ritterkreuz des Eisernen Kreuz (Knight's Cross of the Iron Cross) and became commanding officer of the 26th U-Boat flotilla at Pillau. While in Berlin in Jan. 1943 he was killed in a automobile accident. His former boat, U-65, now under the command of Kapitänleutnant Joachim Hoppe, was lost on Hoppe's first patrol with all hands.