Directed by: Carol Reed
Starring: Oliver Reed, Ron Moody, Harry Secombe, Mark Lester, Shani Wallis
Other mistake: When Oliver is meeting Fagin and his boys, he says, "Is this a laundry then, sir?" You can see Jack Wild (Dodger) mouthing that line on the left side of the screen.
Other mistake: At Fagin's place, Bill is supposed to give Nancy a back-handed slap that sends her to the floor, but there's no sound of the slap and there's no contact - it's very badly acted.
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.
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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