David O. Russell admits he groped his 19-year-old transgender niece in a Florida gym, but according to TMZ, "The Fighter" director won't face charges in the incident.



The case has been closed, a rep for the Broward County Sheriff's Office tells TMZ, without any charges being filed because the alleged assault wasn't witnessed by police. A rep for the department says the alleged victim, Nicole Peloquin, could take her case directly to the State's Attorney, but characterized it as unlikely.



A police report obtained by The Smoking Gun alleges that Russell offered to help Peloquin with ab exercises during which his hand "hovered above" her "private parts." Then Peloquin says after a chat about hormones used to increase breast size, Russell slipped his hands under her shirt and "felt both breasts."



For his part, Russell confirms that the incident happened, but told police that Peloquin was "acting very provocative toward him" and invited him to feel her breasts. He also admitted to being "curious about the breast enhancement."



"David O. Russell emphatically denies any wrongdoing and has cooperated fully with the authorities," said a spokesperson for Russell in a statement to The Wrap.



Peloquin also says Russell made her "pinky swear" about the breast-touching.



Russell is currently at work editing "The Silver Linings Playbook," starring Bradley Cooper.