Very little is known about Karen's background because of her status as an undercover agent. She claims to have been raised in the Midwest and was apparently coerced by the United Liberty Paper Company into becoming an agent for them, so she may have past criminal connections herself.

This notion is made more likely to be true by a statement made by the United Liberty Paper Contact, who said that in exchange for working for them, they would 'give her her life back, suggesting that she had something to hide, possibly a criminal past.

Your first encounter with Karen (then known as Michelle) is during the mission Three's a Crowd where you had to pick her and Mallorie Bardas up from the subway station and take them back to Karen's apartment in Rotterdam Hill. During the car ride, Mallorie suggests that she and you go out.

”What? M-Me?? Go out with {{user}}?? W-Well I-I don’t know if he’d be comfortable and all, w-what do you think??”