According to Donald Rumbelow, the author of The Siege of Sidney Street (1973): "Bentley stepped further into the room. As he did so the back door was flung open and a man, mistakenly identified as Gardstein, walked rapidly into the room. He was holding a pistol which he fired as he advanced with the barrel pointing towards the unarmed Bentley. As he opened fire so did the man on the stairs. The shot fired from the stairs went through the rim of Bentley's helmet, across his face and out through the shutter behind him... His first shot hit Bentley in the shoulder and the second went through his neck almost severing his spinal cord. Bentley staggered back against the half-open door and collapsed backwards over the doorstep so that he was lying half in and half out of the house."

Sergeant Bryant later recalled: "Immediately I saw a man coming from the back door of the room between Bentley and the table. On 6 January I went to the City of London Mortuary and there saw a dead body and I recognised the man. I noticed he had a pistol in his hand, and at once commenced to fire towards Bentley's right shoulder. He was just in the room. The shots were fired very rapidly. I distinctly heard 3 or 4. I at once put up my hands and I felt my left hand fall and I fell out on to the footway. Immediately the man commenced to fire Bentley staggered back against the door post of the opening into the room. The appearance of the pistol struck me as being a long one. I think I should know a similar one again if I saw it. Only one barrel, and it seemed to me to be a black one. I next remember getting up and staggered along by the wall for a few yards until I recovered myself. I was going away from Cutler Street. I must have been dazed as I have a very faint recollection of what happened then."

Constable Ernest Woodhams ran to help Bentley and Bryant. He was immediately shot by one of the gunman. The Mauser bullet shattered his thigh bone and he fell unconscious to the ground. Two men with guns came from inside the house. Strongman later recalled: "A man aged about 30, height 5 ft 6 or 7, pale thin face, dark curly hair and dark moustache, dress dark jacket suit, no hat, who pointed the revolver in the direction of Sergeant Tucker and myself, firing rapidly. Strongman was shot in the arm, but Sergeant Charles Tucker was shot twice, once in the hip and once in the heart. He died almost instantly.

As George Gardstein left the house he was tackled by Constable Walter Choat who grabbed him by the wrist and fought him for possession of his gun. Gardstein pulled the trigger repeatedly and the bullets entered his left leg. Choat, who was a big, muscular man, 6 feet 4 inches tall, managed to hold onto Gardstein. Other members of the gang rushed to his Gardstein's assistance and turned their guns on Choat and he was shot five more times. One of these bullets hit Gardstein in the back. The men pulled Choat from Gardstein and carried him from the scene of the crime.

Yakov Peters, Yourka Dubof, Peter Piaktow and Fritz Svaars, half dragged and half carried Gardstein along Cutler Street. Isaac Levy, a tobacconist, nearly collided with them. Peters and Dubof lifted their guns and pointed them at Levy's face and so he let them pass. For the next half-hour they were able to drag the badly wounded man through the East End back streets to 59 Grove Street. Max Smoller and Nina Vassilleva, went to a doctor who they thought might help. He refused and threatened to tell the police.

They eventually persuaded Dr. John Scanlon, to treat Gardstein. He discovered that Gardstein had a bullet lodged in the front of the chest. Scanlon asked Gardstein what had happened. He claimed that he had been shot by accident by a friend. However, he refused to be taken to hospital and so Scanlon, after giving him some medicine to deaden the pain and receiving his fee of ten shillings, he left, promising to return later. Despite being nursed by Sara Trassjonsky, Gardstein died later that night.

The following day Dr. Scanlon told the police about treating Gardstein for gun-shot wounds. Detective Inspector Frederick Wensley and Detective Sergeant Benjamin Leeson arrived to find Trassjonsky burning documents. Soon afterwards, a Daily Chronicle journalist arrived: "The room itself is about ten feet by nine, and about seven feet high. A gaudy paper decorates the walls and two or three cheap theatrical prints are pinned up. A narrow iron bedstead painted green, with a peculiarly shaped head and foot faces the door. On the bedstead was a torn and dirty woollen mattress, a quantity of blood-stained clothing, a blood-stained pillow and several towels also saturated with blood. Under the window stood a string sewing machine, and a rickety table, covered with a piece of mole cloth, occupied the centre of the room. On it stood a cup and plate, a broken glass, a knife and fork, and a couple of bottles and a medicine bottle. Strangely contrasting with the dirt and squalor, a painted wooden sword lay on the table, and another, to which was attached a belt of silver paper, lay on a broken desk supported on a stool. On the mantelpiece and on a cheap whatnot stood tawdry ornaments. In an open cupboard beside the fireplace were a few more pieces of crockery, a tin or two, and a small piece of bread. A mean and torn blind and a strip of curtain protected the window, and a roll of surgeon's lint on the desk. The floor was bare and dirty, and, like the fireplace, littered with burnt matches and cigarette ends - altogether a dismal and wretched place to which the wounded desperado had been carried to die." Another journalist described the dead man "as handsome as Adonis - a very beautiful corpse."

The trial of the Houndsditch murders opened at the Old Bailey on 1st May. Yakov Peters and Yourka Dubof were charged with murder. Peters, Dubof, Smoller, Karl Hoffman and John Rosen were charged with attempting to rob Henry Harris's jeweller's shop. Sara Trassjonsky and Nina Vassilleva, were charged with harbouring a felon guilty of murder.

The opening speech of A. H. Bodkin lasted two and a quarter hours. He argued that George Gardstein killed Robert Bentley, Charles Tucker and Walter Choat and Smoller shot Gardstein by mistake. Justice William Grantham was unimpressed with the evidence presented and directed the jury to say that the two men, against whom there was no evidence of shooting, were not guilty of murder. Grantham added that he believed that the policeman were killed by George Gardstein, Fritz Svaars and William Sokolow. "There were three men firing shots and I think they are dead."

The prosecution's principal witness that linked Peters and Dubof to Gardstein was Isaac Levy, who saw the men drag him along Cutler Street. Levy came under a fierce attack from defence counsel. After his testimony, Justice Grantham said that if there was no other evidence of identification he could not allow any jury to find a verdict of guilty on Levy's uncorroborated statement. After Grantham's summing-up made it clear that none of the men should be convicted of breaking and entering, the jury found them all not guilty and they were set free.