David O. Russell can breathe a sigh of relief over his puzzling late-December encounter with his transgendered niece.
The Broward County Sheriff's Office, which initially looked into the matter, has closed its investigation into the matter, following its initial Jan. 3 report.
Also read: David O. Russell Fingered in Quasi-Incestuous Transsexual Groping Claim
The "Fighter" director initially attracted the authorities' attention after his 19-year-old, transgendered niece, Nichole Peloquin, told a sheriff's department deputy that Russell had groped her breasts during a workout session at the gym in the Embassy Suites hotel in Deerfield Beach, Fla. on Friday.
Peloqiun — the daughter of Russell's adoptive sister, Barbara Jane Peloquin — told the deputy that she did not tell Russell to stop, but felt uncomfortable during the incident. In a subsequent interview with authorities, Russell confirmed that the encounter occurred, but stressed that he had touched Peloquin's breasts with her permission.
Peloquin has not undergone gender-reassignment surgery, but has undergone hormone therapy to increase her breasts.
Russell has maintained his innocence in the matter. A statement provided to TheWrap by Swartz on Thursday read, "David O. Russell emphatically denies any wrongdoing and has cooperated fully with the authorities."