During the night of 27/28 Sep 1942, U-514 attacked a small convoy consisting of four merchant ships escorted by USS Roe (DD 418) (Cmdr J.N. Opie, USN) while on the surface off the Amazon estuary about 130 miles north-northwest of Salinas, Pará. At 01.05 hours, the first torpedo was fired which missed the leading ship, the American steam tanker Standard Arrow. A second torpedo fired five minutes later struck and sank Ozório just when the U-boat was forced to dive after being taken under fire by the Brazilian steam merchant Imediato João Silva. U-514 surfaced shortly afterwards to overtake convoy again and at 02.07 hours fired a spread of two torpedoes which were evaded by USS Roe and missed the Lages. The destroyer immediately headed for the U-boat by following the torpedo wake, but the attacker managed to fire another torpedo from a stern torpedo tube before crash diving at 02.16 hours. This torpedo sank Lages and U-514 succeeded to retreat from the area without being attacked by the escort.

The Lages (Master Osvaldo Simões da Silva) sank by the stern in shallow waters about 20 minutes after being hit with the masts and bow still visible. Three greasers on watch below were lost. The master, 41 crew members and four gunners (the ship was armed with one 75mm and two 7mm guns) abandoned ship in the lifeboats after sending distress signals and were rescued after being spotted by a patrol aircraft the next morning.