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Karen is an undercover government official who works for U.L. Paper. Before her identity is revealed, she becomes Niko's girlfriend under the false name Michelle, although Karen may also be an alias.

After unveiling her identity, she confiscates Elizabeta's cocaine, and can no longer be dated. She is a smoker and may have a criminal past, as hinted by the boss at U.L. Paper. If one pays attention, Karen has several conflicts in her story. On the mission First Date, she claims to be new in the city, yet knows where the Bowling alley is and knows that the Carnival would not pass safety standards. If one chooses to do Bleed Out before First Date, she immediately suspects him being involved in criminal affairs, despite the fact she shouldn't have had any previous indications.