Director David O. Russell Investigated for Battery After Allegedly Groping Transgender Nephew

Fighter helmer admits to fondling the breasts of his 19-year-old (non-blood) relation, though tells sheriff's deputy that the entire incident, which took place last month, was consensual

David O. Russell, the already controversial Oscar-nominated director, has had his share of scandalous headlines. But this one takes the cake.

The Fighter director is currently under investigation in Florida for battery after touching the breasts of his 19-year-old preoperative transgender nephew (who, incidentally, is not a blood relation) last month.

Though that's not even the most shocking part—this is: According to the sheriff's report of the incident obtained by The Smoking Gun, Russell has admitted to nearly all the behavior alleged against him. His only clarification? That the encounter was consensual.

Last week, the Broward County Sheriff's Department investigated the claim by Nicholas Peloquin (who also goes by the name Nicole, and who is the son of Russell's adopted sister). For his part, a rep for the director told E! News that Russell "emphatically denies any wrongdoing" and "has cooperated fully with authorities."

Here's what those authorities found...

The bizarre incident took place on Dec. 30 when the teenager and the 53-year-old director were working out in the gym at the Embassy Suites hotel in Deerfield Beach, Fla.

According to the sheriff's report, Peloquin told deputies that Russell offered to help him with ab exercises in the gym and that during the workout, his uncle began asking him about his transgender transformation. He replied, telling the director specifically about the hormones he was taking to increase his breast size, all while Russell's hands were on his stomach, "right above his private parts."

It was in the middle of their conversation, Peloquin claims, that Russell put his hands under Peloquin's shirt "and felt both breasts." The teenager said he was uncomfortable, though "did not ask Russell to stop at any time." A few minutes later, both had left the gym.

Two days later, on New Year's Day, Peloquin recounted the incident to his mother, telling her that her brother "came onto her in the gym." His mother then phoned Russell, who said that "nothing had happened."

Which wasn't exactly the story he decided to stick to.

The following day, a deputy from the Broward County Sheriff's Dept. was called to the hotel to investigate a simple battery charge. After interviewing Peloquin, Deputy Debbra Bridgman made contact with Russell, who seemed to confirm the major details of the incident, though denied the intentions behind it.

According to the fiftysomething director, the teen "was acting very provocative towards him" and asked his uncle to help him with ab exercises. Russell also said he asked Peloquin if he felt uncomfortable during their encounter and was assured that he didn't. Russell also seemed to admit that he was the one who asked to touch Peloquin's breasts, though the report simply says, "Being curious about the breast enhancement, Peloquin allowed Russell to feel both of his breasts."

After the incident, Russell said that his nephew made him "pinky swear" not to tell anyone. He also confirmed that he fielded a phone call from his sister later on and denied any wrongdoing, going on to blame the entire incident on his young relation.

"Russell also said that Peloquin is always causing drama since the transgender transformation and has become very provocative and seductive," the sheriff's report read.

Bizarre as the incident seems, it did not result in any arrests, though Peloquin could potentially pursue charges with the state attorney's office.