Black Spot Pete was the first original pirate who settled into Blood Bath Bay in the Caribbean Archipelago. He made famous raids on other ships including stealing the prized diving gear of Dimitri's grandfather Reme Lousteau. He was partners with his friend Cantankerous Tim. However, when Captain LeFwee moved in after his partner was removed through mutiny, Black Spot Pete eventually retired before he was reduced to nothing more than drinking his sorrows away at the local pirate tavern.
When Sly talked to him for information on Reme's scuba gear, he was adamant in not talking to an outsider. To get around this, Sly used Cantankerous Tim's effects to impersonate him and Pete (who's sun-burnt eyes couldn't tell that it wasn't the real Tim) told him that the treasure was buried on Dagger Island, and that the map was in the possession of LeFwee.