Black Spot Pete is a retired pirate residing in Blood Bath Bay. In his younger years, he and his partner Cantankerous Tim famously raided many ships, which included stealing the prized diving gear of Dimitri Lousteau's grandfather, Reme. Pete later retired from piracy, eventually becoming a drunkard who often spent time at the local tavern.
When Sly Cooper talked to him to get information on Reme Lousteau's diving gear, Pete was adamant in not speaking to an outsider, so Sly disguised himself as Cantankerous Tim and talked to Pete again. The old pirate, whose sun-burnt eyes couldn't tell the difference between Sly and Tim, spoke about the gear after engaging in an insult competition with his "shipmate."
Pete explained that the diving gear and the rest of Reme's treasure was buried on Dagger Island but that the map to it had been stolen by LeFwee, another pirate who was nicknamed "the smartest man on the seven seas." When Sly suggested that he and Pete go to Dagger Island together, Pete remarked that his seafaring days were long past. After that, the two bade each other farewell.