David O. Russell Accused of Groping Transgender 'Niece'

Hollywood director David O. Russell has been accused of groping his teenage transgender “niece.”

The Oscar-nominated director admits to touching the 19-year-old's breasts while the two were exercising in a Florida gym but claims he had consent to do so, according to The Smoking Gun.

According to a Broward Sheriff’s Office report which was obtained by The Smoking Gun, Russell, 53, and Nicholas Peloquin, 19, were exercising in the gym of the Embassy Suites in Deerfield Beach. Peloquin, who now goes by the name Nicole, told a sheriff’s deputy that Russell is his mother's adopted brother.

Russell's “niece,” who was born a man and is currently in the preoperative phase to change sex, told cops the two had been doing abdominal exercises when Russell asked questions about the transformation.

At that point, Peloquin explained that Russell put his hands under his top “and felt both breasts.” While Peloquin stated he felt uncomfortable “he did not ask Russell to stop at any time.”

Peloquin said he left the gym a few minutes later, and eventually told his mother that her brother “came onto her in the gym.”

Russell adamantly denies wrongdoing stating that he repeatedly asked if Peloquin was uncomfortable and never asked to touch the breasts. Russell explained to Deputy Debbra Bridgman that “he had asked Peloquin several times if he was uncomfortable and he did not ask him to not touch him,” according to Fox News.

Russell also told the deputy that Peloquin is “always causing drama since the transgender transformation and has become very provocative and seductive.”

Cops told TMZ that the case is currently under investigation and authorities plan to re-interview the parties involved. The case will eventually be submitted to the Florida State's Attorney's Office who will decide if criminal battery charges will be filed.

Russell’s spokesperson said in a statement: "David O. Russell emphatically denies any wrongdoing and has cooperated fully with the authorities."