Directed by: Carol Reed
Starring: Oliver Reed, Ron Moody, Harry Secombe, Mark Lester, Shani Wallis
Continuity mistake: When Mr Bumble and the female workhouse employee take Oliver to the Governor's office, Bumble raises his hand and knocks on the door. The woman sings "They will lay the blame on the one who named him", prompting Bumble to move his hand away from the door, toward his face, as if he's about to place it over his mouth in concern. The camera then changes angles and Bumble's hand is suddenly lowered and nowhere near his face.
Continuity mistake: When Nancy is singing "As Long As He Needs Me" her dress continually changes between shots from being over her shoulder to half way down her arm.
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Answer: If you mean the scene where he is teaching Oliver how to be a pickpocket, then yes, Fagin knew. He is role-playing the part of a "victim," showing Oliver what it is like to steal an item from someone's pocket without it being noticed. He is employing some criminal "positive reinforcement."
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