Carmen was a freelance public relations consultant that Katherine Chancellor hired for Jabot Cosmetics in 2006. Jack Abbott resented her involvement but soon became attracted to her. Eventually he and Carmen had a one-night stand. Carmen was then hired by Victor Newman to work for Newman Enterprises' new cosmetics division, Beauty of Nature Cosmetics.
While at Newman Enterprises, Carmen began an emotional affair with Neil Winters who was estranged from his wife Drucilla. The physical extent of Carmen's relationship with Neil was a kiss. Believing that the two were having an affair, Drucilla ransacked Carmen's room and cut her clothing with a scissors. Carmen had Drucilla arrested for aggravated burglary and got a restraining order. Dru violated the restraining order on more than one occasion, even attacking Carmen in Newman Enterprises' break room. Unbeknownst to Dru, the attack was captured on a hidden video camera accidentally left on by Noah Newman. The footage was discovered by Dru's enemy, Phyllis Newman, who alerted Carmen. Carmen took the tape to the Genoa City police which landed Dru in more trouble.
During these events Neil helped Dru deal with her feelings towards Carmen and tried to act as peacemaker. Carmen could not understand how he could condone Dru's actions. She informed him she was going to ask the District Attorney, William Bardwell, to prosecute Dru. Neil believed that Carmen was overzealous in her actions and wanted revenge on Drucilla.
Dru hired Michael Baldwin as her attorney, and Michael asked Paul Williams to investigate Carmen's background. Paul discovered that at Carmen's previous job (prior to her arrival in Genoa City) she had an affair with a married executive. She left that job after being paid a large settlement. Michael confronted Carmen with this information in an attempt to get her to drop her lawsuit against Dru but she refused.
Carmen was found dead behind Neil's jazz club, Indigo, on the club's opening night. Will believed that she was murdered and, out of numerous possible suspects, arrested Devon Hamilton for her murder. Michael became Devon's defense attorney and looked for other plausible suspects, particularly Brad Carlton and Jack, so that he could establish reasonable doubt as part of Devon's defense.
Carmen's murderer turned out to be Jana Hawkes. Jana killed Carmen because Carmen saw Jana looking through a folder containing pictures and facts about the Grugeon Reliquary (a fictional piece of medieval art with foreign letters engraved on it, revealed to be the keys to a massive fortune), which Jana stole from Victoria Newman's car.