Black Spot Pete is a retired pirate who resides in Blood Bath Bay. In his younger years, he and his partner, Cantankerous Tim, famously raided many ships and also stole 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 spoke to him to get information on where to find Reme Lousteau's diving gear, Pete was adamant in not speaking to an outsider, so Sly disguised himself as Cantankerous Tim in order to speak with Pete again. The old pirate, whose sun-burnt eyes could not 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 its map had been stolen by Captain 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.