Carly Roberts (Sarah Joy Brown) arrives in town and ingratiates herself into the life of Nurse Bobbie Jones (Jacklyn Zeman) -- her biological mother—when she enrolls in the nursing program at General Hospital. Meanwhile, Carly begins an affair and friendship with mobster Jason Morgan (Steve Burton). After being rejected by Bobbie, Carly seduces Bobbie's husband Doctor Tony Jones (Brad Maule) and she falls in love with him. Bobbie's brother Luke Spencer (Anthony Geary) uncovers Carly's true identity and warns to stop hurting her mother. Bobbie however discovers the affair on her wedding anniversary to Tony, making the two bitter enemies. After a fight with Tony, Carly has a one-night stand with Jason's troubled brother A. J. Quartermaine (Sean Kanan) and ends up pregnant. Carly convinces Jason to claim the child as his own and she gives birth to her son in December 1997 whom Jason names Michael after his best friend, mobster Sonny Corinthos (Maurice Benard). Jason has Michael christened, Emily and Mike are the godparents and he invites Bobbie. The Quartermaines show up and after much heated discussion Robin convinces Jason to let them stay. Carly shows up near the end but chooses to sit in the back. Carly has a hard time bonding with Michael, but Jason takes care of him and has invited Bobbie into their lives to be the baby's nurse. During a terrible winter storm, Bobbie and Carly find themselves alone in the penthouse and Bobbie tells Carly how much she loved her baby. It snaps Carly out of her depression and she is ready to hold Michael. The two women rush to the restaurant where Jason and Michael are with Emily and Mike. When Carly takes Michael in her arms, she is overwhelmed and tells Bobbie she is her daughter Caroline. Bobbie doesn't believe her until Virginia Benson (Carly's adoptive Mom) arrives and the Carly's story is confirmed. Tony later kidnaps Michael to protect him from Jason and Sonny's dangerous lifestyle. When Tony manages to avoid prosecution, Carly shoots him and fakes insanity to avoid prison time and ends up being committed. Jason helps get her released and Jason's girlfriend Robin Scorpio (Kimberly McCullough), fed up with Carly being so dependent on Jason, exposes Michael's true paternity. Jason fears his hatred of A. J. will hurt Michael and signs away all rights; however, he remains an integral part of Michael's life. Jason comforts Elizabeth Webber (Rebecca Herbst) over the supposed death of her boyfriend, Lucky Spencer (Jonathan Jackson). Carly misunderstands their relationship, and sleeps with Sonny. Jason is unable to deal with the betrayal of Sonny and Carly, and leaves town.