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Karen Larsen worked in Governmental Affairs and leaked Leo McGarry's medical records, including those regarding his history of drug and alcohol abuse, to Larry Claypool (a close family friend who later leaked it to Congressman Peter Lillianfield).
She was discovered by Sam Seaborn, who, acting on a tip from Ginger believing her to be the a leak in an unrelated matter, questioned her in his office. She was fired on the spot by Seaborn. However, after revealing to Leo McGarry that her father, too, was an alcoholic, he allowed her to remain at her old job, deciding they both deserved a second chance.