On October 16, 1927, Diamond tried to stop the murder of "Little Augie" (Jacob Orgen). Diamond's brother Eddie was Orgen's bodyguard, but Legs Diamond substituted for Eddie that day. As Orgen and Diamond were walking down a street on the Lower East Side of Manhattan, three young men approached them and started shooting. Orgen was fatally wounded and Diamond was shot two times below the heart. Diamond was taken to Bellevue Hospital, where he eventually recovered. The police interviewed Diamond in the hospital, but he refused to identify any suspects or help the investigation in any way. The police initially suspected that Diamond was an accomplice and charged him with homicide, but the charge was later dropped. The assailants were supposedly hired by Louis Buchalter and Gurrah Shapiro, who were seeking to move in on Orgen's garment-district labor rackets.