- Main article: Sun Tan Oil, Stale Margaritas and Greed
Massacre in Panama is one of the events that happened before Max reach to Brazil to work with Rodrigo Branco. It happened in the Panama Canal where the United Souls of the People (AUP) attack the yacht that Max is stationed to protect a woman. It resulted in the deaths of the yacht occupants with the only survivors being Max Payne, Raul Passos and Marcelo Branco.
Before Max Payne becomes a bodyguard, he was wasting his live away in Walton's Bar as he still suffer his loss of his love ones. This changed when Passos meet up with Max and tried to hire him into private security. Max start the trouble when he shoot Tony DeMarco which cause a gunfight between Max and Passos against the wrath of the DeMarco Crime Family. Before they leave New Jersey, he visited his wife and daughter grave one last time before being ambushed by the Mafia.
After Max escaped New Jersey, he worked with Passos on private security with one example in the wedding in Aruba. Max enjoy the work but disliked the people he protect and just tolerate. His next job was to protect a rich divorcee, Daphne Bernstein in a yacht near the Panama Canal.
Little did Max know, there was a lot of suspicious things around in the event that Max was too drunk and busy to noticed. The AUP was tipped by the UFE about the money in the yacht that Passos and Marcelo are smuggling
Before the massacre happened, Max was drinking during the party and talk to his friends. He soon went down the boat and passed out from drunkenness.