Horwood failed to act, refusing to respond to allegations or investigate his force's activities, and dismissing the stories as gossip and scandal-mongering. This culminated in 1928, with the scandal involving Sir Leo Money and Irene Savidge, in which the police were accused of perjury and harassment. Horwood again failed to handle the case, which was saved by the efforts of Chief Constable Frederick Wensley of the Criminal Investigation Department, and retired later the same year on 7 November 1928. Although he had in fact been scheduled to retire at that time (two days before his sixtieth birthday), it appeared to the public that he was leaving in disgrace and did him no favours. His reputation was further tarnished after Station Sergeant George Goddard of "C" Division was found guilty of taking bribes, confirming what many believed about the force's honesty and integrity. Horwood was appointed Knight Commander of the Order of the Bath (KCB) in the 1921 New Year Honours, and Knight Grand Cross of the Order of the British Empire (GBE) on 2 November 1928, just before his retirement. He died in 1943 at his home in West Mersea, Essex, after a short illness.