Continuity mistake: In the early-morning scene at Mr. Brownlow's house, Oliver is shown sleeping in his bed. He awakens and his hair is in complete disarray as he walks towards the open balcony doors. Standing on the balcony and gazing outside, however, his hair is combed neatly.

Oliver (1968)
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Directed by: Carol Reed
Starring: Oliver Reed, Ron Moody, Harry Secombe, Mark Lester, Shani Wallis
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Trivia: The director, Carol Reed, is actually Oliver Reed's (portrays Bill Sikes) uncle.
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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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