You said the room was "paid for" (which I take to mean prepaid) - so why would it be a surprise that said charge from the time of prepaid booking would have appeared on your CC statement? You ended up not staying there because they didn't have a room; work with the property to have the charge reversed, or let the CC company loose on them if you have to. But this isn't fraud, as I doubt you could prove intent to deceive at the time of booking. It's just garden variety operational ineptitude.

This isn't fun, but sadly it seems to be the rule more than the exception that nothing good can happen when arriving at a property late at night. Especially these days when everyone is sold out and is more than happy to give away rooms, or is experiencing operational issues of the sort you note.